Wildfires that have scorched hundreds of square kilometres of central and southern B-C are having an unexpected effect on lumber prices.
Random Lengths, a company that tracks lumber prices, says the price of Western spruce-pine-fir lumber has risen by 5.5 per cent to 400-dollars (U-S) per thousand board feet since the fires flared one week ago, while another expert predicts hikes of up to eight per cent.
Limited supply is one reason for the increase as some Interior sawmills have halted operations because of the fires.
Ketan Mamtora, an analyst with BMO Capital Markets, says if the fires persist for a long time or if mills are damaged or stay shut for months, lumber prices could leap between 15 and 17 per cent.
(The Canadian Press)