Lumber is one of the most widely used raw materials on the planet. There's generally plenty to go around, and it's reasonably priced.
The price of lumber in the United States has risen by as much as 377 percent in the last year, the fastest increase since the post-World War II housing boom.
In May, the price of 1k feet of wood, which typically costs $200-300, jumped to about $1.7k.
In anticipation of declining demand, sawmill operators reduced output capacity by 40% by April 2020. Demand for lumber increased rather than decreased.
Record low home borrowing rates, stimulus funds, and more time at home fueled a surge in house remodels and new construction, driving up lumber demand to the point that sawmills (factories that process and cut logs) can no longer keep up.
Source: NASDAQ, US Census Bureau, The Hustle