U.S. Housing Market Faces Potential Headwinds

A typical 2,400 square foot, single-family home requires approximately 16,000 board feet of framing lumber and over 14,000 square feet of other wood products including plywood, particleboard and fiberboard, making timber is one of the most essential commodities used in the homebuilding industry.

Copper is also an essential component to both residential and commercial buildings, as this commodity is used in a variety of ways, including copper wiring, plumbing, fittings, and valves. Some of the most prominent copper producers and manufacturers include: Southern Copper Corp (NYSE:SCCO), Encore Wire Corporation (NASDAQ:WIRE), Taseko Mines Limited (USA) (NYSEMKT:TGB), and Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX).

For those wanting to fine-tune their focus on building and construction companies, State Street’s SPDR S&P Homebuilders (ETF) (NYSEARCA:XHB) is a great option.

Investors should note that while the recent setback in land prices and new home sales have caused some concern for housing analysts, the overall trend has been a positive one.

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Disclosure: No positions at time of writing

This entry was posted in Agriculture, Commodity Futures, Commodity Producers, Copper, Industrial Metals, Timber and tagged CUT, FCX, SCCO, TGB, WIRE, WOOD. Bookmark the permalink.

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