MARCH 2021 BUILDING MATERIAL MARKET REFLECTION
For the majority of March, we saw an old-fashioned stand-off on pricing. The market remained flat, and buyers hoped for a much-anticipated discount before they bought back in. Mills waited patiently, coasting on order files, for buyers to come back into the market. This stand-off came to an end on the last week of the month as buyers blinked first and started purchasing for their spring needs. All indicators show that the market is underbought, as most buyers have tried to manage high prices by keeping inventories tight with hopes of a market correction that has yet to come.
FRAMING LUMBER
It felt like the lumber market was poised to give something back on pricing for much of the month, as it was relatively flat with pockets of discounts on specific items, most notably 2×4-16’.But with its strong finish the last week of March, mills have firmed up pricing and extended order files through April. It looks like there will be no pricing relief for the foreseeable future as we head into spring.
| R/L | FEB 25, 2021 | MAR 30, 2021 | +/- |
|---|---|---|---|
| 2×4 | $1,284 | $1,316 | $32 |
| 2×6 | $1,271 | $1,641 | $70 |
| 2×8 | $1,234 | $1,303 | $69 |
| 2×10 | $1,209 | $1,316 | $107 |
| 2×12 | $1,234 | $1,341 | $107 |
| STUDS | FEB 25, 2021 | MAR 30, 2021 | +/- |
|---|---|---|---|
| 2×4 – 92 5/8“ | $1,140 | $1,247 | $107 |
| 2×4 – 104 5/8“ | $1,478 | $1,543 | $65 |
| 2×6 – 92 5/8“ | $1,065 | $1,177 | $112 |
| 2×6 – 104 4/8“ | $1,478 | $1,562 | $84 |
OSB
In March, the Mill shutdowns continued to createsupply issues, and as mentioned last month, open market pricing continues to fetch a tremendous premium over contract prices. This premium reached over $800/M through March. We are now seeing contract pricing start to close that spread. You can expect to see OSB pricing on R/L print rise significantly over the next few weeks. If you thought OSB was tough in March, you haven’t seen anything yet, as we head into April with more mill downtime scheduled and prices on the rise.
| OSB | FEB 26, 2021 | MAR 30, 2021 | +/- |
|---|---|---|---|
| 3/8″ | $1,115 | $1,415 | $300 |
| 7/16″ | $1,115 | $1,415 | $300 |
| 15/32″ | $1,135 | $1,435 | $300 |
| 19/32″ | $1,370 | $1,630 | $260 |
| 23/32″ | $1,515 | $1,765 | $250 |
PLYWOOD
Plywood remained in a strong position through March, with order files being quoted into July/August by many mills. This trend will continue throughout the spring and summer. How much prices appreciate in coming months may depend on the pricing and availability of OSB.
| PLYWOOD (STD) | FEB 26, 2021 | MAR 30, 2021 | +/- |
|---|---|---|---|
| 9.5 (3/8) | $1,160 | $1,233 | $73 |
| 12.5 (1/2) | $1,547 | $1,644 | $97 |
| 15.5 (5/8) | $1,933 | $2,055 | $122 |
| 18.5 (3/4) | $2,320 | $2466 | $146 |
| 25.5 (1) | $3,486 | $3,705 | $219 |
Pricing: CAD
ENGINEERED WOOD PRODUCTS
With 2×4 pricing continuing its upward trend, it leaves truss producers with little to no choice to look at price increases moving forward.
The supply of EWP continues to be tight, and with a very fragile supply chain, all it takes is one manufacturing or transportation issue to cause orders to be delayed. Expect this dance to continue for the foreseeable future as manufacturing struggles to get caught up to strong demand. Rumblings of further price increases are being heard throughout the industry.
When you thought it couldn’t get any worse in the EWP world, delays in truss hangers and plates are now added to the mix. Many manufacturers are behind and struggling to meet delivery dates. With the price of steel continuing to rise, we expect price increases on these items as well.
FINISHING PRODUCTS
Anything made with MDF is a significant issue within finishing products. The raw material that is sourced offshore is being held up due to container shortages, lack of ocean shipping vessels, and major congestion at North American ports.
There is simply no more capacity available from shipping lines. This delay is causing major issues in the mouldings and doors industry. Lead times for all products continue to extend from the traditional three months to as much as 8-10 months, and many manufacturers have stopped taking new orders until they can get caught up. We expect supply issues to continue through the summer, and with that, we can expect to see more price increases.
Framing Lumber Composite Price
APRIL 1, 2021 LUMBER MARKET REPORT HIGHLIGHTS:
- There was a mix tone across the lumber market last week.
- Sales in Southern Pin ,picked up throughout the week, and some of the deeper discounts dried up.
- Soft spots emerged in green Douglas Fir, but traders reported mill sales gaining traction in dry
- Coast species and in Canadian S-P-F, with modest to moderate price gains posted.
- Order files at many of these mills reached late April and early May.
| This Week | Last Week | Year Ago | |
|---|---|---|---|
| FRAMING LUMBER COMPOSITE PRICE | $1,292 | $1,299 | $535 |
| 2×4 #2&BTR KD Western S-P-F | $1,316 | $1,290 | $447 |
| 2×6 #2&BTR KD Western S-P-F | $1,341 | $1,326 | $432 |
| 2x4x9′ Studs | $1,599 | $1,574 | $505 |
| 2x6x9′ Studs | $1,643 | $1,630 | $590 |
| 2×10 #2&BTR KD Western S-P-F | $1,438 | $1,406 | $650 |
2020-2021 FRAMING LUMBER COMPOSITE PRICE
Structural Panel Composite Price
APRIL 1, 2021 PANEL MARKET REPORT HIGHLIGHTS:
- Structural panels remained scarce, and prices continue to sore across the market.
- An increasing volume of OSB was offered on the open market, especially in Canada.
- Producers reported booking volume at triple-digit premiums in spots.
- Southern Pine plywood sales were steady, but availability was hit or miss.
- Western Fir plywood producers and distributors reported steady sales, and prices climbed.
- Long order files kept Canadian plywood buyers from purchasing in greater volumes, leaving mill prices flat but firm.
| This Week | Last Week | Year Ago | |
|---|---|---|---|
| ORIENTED STRAND BOARD COMPOSITE | $1,387 | $1,321 | $445 |
| 3/8″ 4×8 OSB | $1,415 | $1,321 | $415 |
| 23/32″ 4×8 OSB T&G | $1,765 | $1,675 | $675 |
| 3/8″ 4×8 Spruce Plywood | $1,160 | $1,015 | $399 |
2020-2021 ORIENTED STRAND BOARD COMPOSITE PRICE
*All Pricing is in CAD