Construction products

Miter 10 says cost pressures are driving up prices for construction products

Among the wood suppliers on the list is MLC Group, a manufacturer of molds and components. Since May 1, prices have increased by 6 to 11%. The listing shows that prices for Southern Pine, Stoneyhurst Timbers, Taranaki Pine, Nelson Pine and Rosvall Sawmill products will increase in June.

Miter 10 CEO Solutions Chris Peak told Newshub that cost inflation is pushing up prices in all grades, including lumber.

“This past year has been difficult and we have seen pressure on freight, raw material and labor costs,” he explained.

Miter 10 is working with business partners to try to mitigate costs, but some price increases are inevitable – and Peak says “under certain circumstances we have no choice but to pass them on.”

A spokesperson for the Ministry of Primary Industries (MPI) confirmed that domestic demand for logs and sawn timber remained strong.

As of October 2020, New Zealand’s log supply has been relatively low. Increased demand for logs, mainly from China, is driving up wood prices and wood processors across the country are struggling to keep up with demand.

“There was a price increase for most log processors for domestic lumber products in February,” the spokesperson said.

Due to increased demand from the United States and Australia, sawn lumber export prices are relatively high.

“First, the volume of logs supplied to sawmills is somewhat low, second, exporters compete with domestic users for available timber,” the spokesperson added.

“This has put upward pressure on domestic timber prices.”

ASB chief economist Nick Tuffley has confirmed that strong demand for raw log exports, increased construction activity and reduced capacity of processors are pushing up prices.

“There is a lot of demand but the supply capacity – especially for sawn timber – has been impacted.”

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