Sep 14, 2005. /Lesprom Network/. The price of wood products used in construction has shot up 30% in the wake of hurricane Katrina, as contractors, fearing shortages, have rushed to fill orders. Pete O'Neil, co-owner of Value Lumber Yards of Eugene said the "CNN-driven market" has fueled fears that lumber products will run out, he said. "There's no primary reason for this other than just panic buying," he said. Value Lumber is selling waferboard and plywood, used in roofing and siding, for about $14 and $18.25 a sheet, respectively. That's about $3.50 to $4 higher than before Katrina struck two weeks ago, Mr. O'Neil said. According to Random Lengths, a Eugene trade publication which tracks the wood products market, structural panels like plywood and oriented strand board, have set a "scorching post-hurricane pace as buyers appear to be more concerned about availability than prices." Publisher Jon Anderson said emotion appears to be playing a large role in the market frenzy, but the response is also practical as retailers and builders worry about disruptions in the distribution of everything from lumber to diesel fuel to resin for plywood. Even those that have the materials they need right now are scrambling to purchase what they will need this fall and beyond, when prices could be even higher. "They're trying to make sure they've covered themselves," Mr. O'Neil said. In response to the surge in demand, mills are also raising their prices. The cost of roofing materials jumped between 5% and 7% in the week after Katrina struck, said Steve Davey, owner of River Roofing in Springfield. The materials are getting more expensive primarily because of the escalation in gasoline prices, which is driving up shipping costs, he said. And most roofing materials are also made from petroleum products, so rising oil prices have a direct manufacturing cost as well. "It's kind of a double whammy," Mr. Davey said. "And we really have not been able to figure out a way to protect ourselves. When we put a bid out, how do you hold it for the next four to six months and not know what will happen with your materials?"