China's Lumber Demand Increases, OSB Prices Soften

One unintended consequence from China's demand for lumber could be less lumber available for U.S. homebuilding. China has surpassed Japan as the second largest user of North American lumber, after the U.S. Low-grade lumber that would be used for building houses in Atlanta is used largely in concrete forming when shipped to China, and also in furniture construction.
Lumber sales to China continue to see growth
B.C. continues to ramp up lumber shipments to China and has already exceeded its lumber shipments to the Asian economic giant over last year despite the difficult global economic conditions.
Typically, OSB prices start to fall at this time of year, unless there is tropical activity to stimulate buying. Mill files are growing shorter, and secondaries are trying to move off contract loads. Building material supply yards have thin inventories for this time of year. There is very little residential construction in Georgia.
Two Atlantic Ocean weather systems being watched
The National Hurricane Center is monitoring two systems in the Atlantic Ocean this morning.

Georgia Building Material Suppliers Get Good News-Housing Starts and Construction Costs Rise

Wednesday, September 15, the U.S. Census Bureau announced that housing permits and starts for August were up from July. This is great news for building material supply businesses in Georgia:
Housing Starts in U.S. Climb to Nine-Month High
Sept. 17 (Bloomberg) -- Builders in the U.S. broke ground in August on the most houses in nine months, led by a jump in multifamily dwellings that overshadowed a decrease in construction of single-family homes.
In a related story, the Bureau of Labor Statistics released its producer price index for residential construction:
A Bright Spot in Housing: Construction Costs
Yesterday the Bureau of Labor Statistics released its producer price index for residential construction. Its significant increase from July to August is a good sign for the housing market.
One major component of construciton costs continues to falter:
CME lumber ends lower on easier cash market

Georgia Lumber, Construction & Building Material Supply update

Cool, rainy weather dampened sales of Yellow Pine Lumber in Georgia this week. The heavier rains being experienced in producing areas will make it hard to get logs out, which will result in a short- to medium term reduction in log decks. Lumber Futures closed higher September 15th, due to short-covering.
CME lumber ends higher on short covering
CHICAGO, Sept 15 (Reuters) - Chicago Mercantile Exchange lumber futures closed higher on Tuesday amid short covering prompted partly by a firm expiration in the September contract.
Construction Starts Up 13% in August vs July
Reed Construction Data (RCD) announced today that the year-to-date value of construction starts through August 2009, excluding residential contracts, totaled $162.3 billion, 13.0% less than in the same period in 2008. Individual month of August starts were 12.7% higher than in July.

Georgia Lumber & Building Material Prices continue to soften

Lumber and building material prices seem to be slowly grinding lower again. Lumber & building material supply businesses in Georgia continue to suffer as a result of housing market fundamentals:
James Hardie: US Housing Market Hasn't Bottomed, But Close
NEW YORK (Dow Jones)--James Hardie Industries NV (JHX) Chief Executive Louis Gries said Monday he expects positive year-on-year housing starts data in the U.S. between March and May 2010.
DJ CME Lumber Review: September Slips But Most Others Gain
Trading Markets (press release)
A broker said better-than-expected housing starts in Canada during August reported early in the day might have been mildly supportive for lumber futures.
-There seems to be little support for OSB prices, other than 2-3 week order files at the mills. With the mill curtailments and shutdowns in effect, development of any tropical activity could cause a further surge in prices.

Home Buyer Tax Credit, Atlanta Recovery, Mortgage Applications Surge, Lumber Mixed

Buy now: Time is running out on the first-time buyers tax credit
"The combination of near historically low interest rates, favorable pricing by builders, along with this tax credit, makes buying now the deal of the century,"
Economist: City’s recovery will start next year
Atlanta is poised for an economic recovery starting in the second half of 2010
U.S. MBA Mortgage Applications Index Soared 17% Last Week
Mortgage applications in the U.S. jumped the most since March last week...
CME Lumber Review: Ends Mixed In Quiet Session
The September contract settled down $0.50 per 1,000 board feet at $175.00, while November was up $2.70, or 1.55%, at $177.10. January settled up $1.60 at $197.90

US Lumber and Log Exports Up, 2008 Home Sales Report for Atlanta

West Coast's log, lumber exports increase in second quarter of 2009
Log exports for the second quarter of 2009 from Oregon and Washington totaled 189.5 million board feet, up 38.6 percent from the first quarter volume of 136.7 million board feet.
A total of 239.5 million board feet of softwood logs and 80.2 million board feet of softwood lumber was exported from Washington, Oregon, northern California, and Alaska in April, May, and June of this year, according to the U.S. Forest Service's Pacific Northwest Research Station.
Atlanta Home Sales Report
Home sales overview by county for Atlanta 2007-2008
Gwinnett 2008 10,467 units -31.30% from 2007.

Atlanta Area's Gwinnett Habitat for Humanity constructs 100th home

Building hope: Habitat for Humanity constructs 100th home
Here at Cofer/Adams Building Supply Center, we are proud to say that we had a part in helping Habitat For Humanity build their 100th American Dream in Gwinnett County. We supplied the lumber, building materials and engineered wood that went in to making the world a better place.

Cofer Adams Building Center, Inc. is a full service builders supply of structural and related building products for residential new construction in the Atlanta – Athens Georgia area. We provide prefabricated components, including floor trusses, roof trusses, and engineered wood; wood and vinyl windows; and pre-hung interior and exterior doors, as well as assemble and distribute interior and exterior door units. We also offer lumber and wood sheet goods including dimensional lumber, plywood, and oriented strand board products used in on-site house and commercial framing; millwork products, which consist of interior trim, exterior trim, columns, and posts; and other building products that include gypsum, roofing, and insulation.
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Cofer Adams Building Center, Inc. The Athens Atlanta Area's Premier Building Material Supply Lumber Delivery

We are ready to deliver the lumber and building materials for Your American Dream!
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