You are using an older browser version. Please use a supported version for the best MSN experience.

The CEO of the largest US lumber producer says that the commodity's sky-high price is not the new normal, even as he foresees sustained demand over the next decade

Business Insider logo Business Insider 3 days ago ilee@insider.com (Isabelle Lee)
CHICAGO, IL - JULY 26: A customer's lumber sits on a cart at a Home Depot store on July 26, 2017 in Chicago, Illinois. Scott Olson/Getty Images © Scott Olson/Getty Images CHICAGO, IL - JULY 26: A customer's lumber sits on a cart at a Home Depot store on July 26, 2017 in Chicago, Illinois. Scott Olson/Getty Images

Devin Stockfish, the chief executive of Weyerhaeuser, the largest lumber producer in the US, on Tuesday said the sky-high price of the commodity is a blip that is unsustainable.

"I don't think $1,000 lumber prices are the new normal," Stockfish told the Nareit REITweek 2021 Investor Conference, Bloomberg reported.

He continued: "With that being said, when you think about the amount of housing we're going to have to build in the U.S. over the next three, five, 10 years, that's just a significant amount of demand for wood products."

Lumber prices have soared in the past year as housing markets around the world boomed during the coronavirus pandemic, with the random-length price rising around 40% in 2021.

Lumber stood at over $1,168 per 1,000 board feet on Tuesday afternoon.

"We're going to continue to look for timberland opportunities," Stockfish said. "Every deal that comes to market, we're looking at, so I would expect us to continue to be active on that front."

The Seattle-based company owns 11 million acres of timberland in the US.

Shares of Weyerhaeuser closed lower on Tuesday by 0.36%, at $35.57.

Read the original article on Business Insider
AdChoices
AdChoices
AdChoices

More From Business Insider

Business Insider
Business Insider
image beaconimage beaconimage beacon