Lumber extends rally as demand boosts imports

Lumber futures rose by the maximum allowed by the Chicago Mercantile Exchange, capping the biggest four-session rally since 2010, on mounting speculation that new construction in China is boosting demand for imported wood.

Log prices in China surged to a record in the fourth quarter, sparking a 26 percent jump in imports from New Zealand and the United States during the last six months 2012, compared with the first half, Seattle-based Wood Resources International said on Tuesday.

Even with futures up 44 percent from a year earlier, lumber may keep rising, said Paul Quinn, an analyst at RBC Capital Markets in Vancouver.