Connecticut plywood prices surge since Katrina

Sep 19, 2005. /Lesprom Network/. While lumber prices nationally have soared in the wake of hurricane Katrina, the cost of plywood - key in the construction of new homes - is rising, but has yet to reach last year's record price levels. And experts say the prices for plywood and other lumber are expected to retreat in the coming weeks now that lumber mills in the South have resumed production and key ports in the region have resumed shipping. It is also becoming increasingly clear that rebuilding in hurricane-damaged areas will take years, spreading out the demand for plywood and other lumber. "All in all, it looks like there will be a plentiful supply of lumber," said Steve Cochran, managing director at economy.com, a research and consulting firm in West Chester, Pennsylvania. "And it looks like a lot of downed timber in the areas affected by the hurricane will be turned into lumber quickly." So far, lumberyards in Connecticut are reporting no shortages of plywood, but prices have risen sharply since the hurricane. Sanford and Hawley, which has lumberyards in Farmington, Avon, Manchester and West Springfield, said this week that the cost of a 4-by-8 sheet of 7/16-inch oriented strand board sold for $15, up 25% from $12 before Katrina struck. A year ago, a sheet of the same board, which is used like plywood, but is cheaper, sold for about $20. "Things are still relatively inexpensive, compared to what they were a year ago," said Frank Sanford, the lumberyard's owner. "At this point, things are starting to settle down." Price spikes for plywood and lumber nationally have grabbed the headlines in recent weeks. According to Random Lengths, a Seattle-based newsletter that tracks weekly movements in lumber prices, the national averages for plywood rose sharply after the hurricane. Two weeks ago, just before the hurricane hit, the national average wholesale mill price for half-inch, four-ply Western plywood - commonly used in Connecticut for roofing and walls - was $372 for 1,000 square feet. On Wednesday, the average was $470, but was still far below the price a year ago, which was $534.