APRIL 2022 BUILDING MATERIAL MARKET REFLECTION
As the Easter weekend approached the tone in the market was quite bearish as the price correction continued in lumber and OSB. But as is quite often the case in our industry long weekends tend to be barometer’s one way or another. Buyers came out of the Easter break either feeling confident prices had bottomed or were underbought and needed to fill needs for an anticipated strong spring. Either way we saw the market firm up and go on a bit of a run. A stronger than anticipated U.S. Housing report added fuel to the fire allowing mills to move off any built-up inventory and push out order files.
https://www.census.gov/construction/nrc/pdf/newresconst.pdf
With the slow start to the retail season, we saw some contract loads pushed into the market causing OSB to struggle to find a trading level. It did towards the middle of the month but not before we saw a correction of almost $500/M over a two-week period. It has since found some footing and mills have firmed up pricing and order files.
As many anticipated, plywood followed the downward trend of OSB last week. Print dropped 5 percentage points on Friday inducing a generally uneasy market feel.
Truss orders continue at a frenetic pace for many producers, pushing lead times out and putting increased pressure on production. EWP availability is going from bad to worse as many mills are now running 2 – 4 weeks late on orders. At this point we are seeing very little light at the end of the tunnel and the struggle will continue for the next few months.
Finishing products look to be finding some stable footing as raw material availability continues to improve and production seems to be getting caught up. There are still pockets of disruptions, but these seem to be getting less and less.
Looking Through the Crystal Ball
From a building perspective the market is very strong heading into spring with builders continuing to push to get caught up. Transportation and retail sales are something to keep an eye on moving forward. Transportation is better than it was but is still not good by any means. The impact of inflation on retail sales will have a large influence on the direction of the market as we head into the spring / summer.
FRAMING LUMBER
Lumber found its trading level as we approached the Easter weekend. It continued to gain traction as the month comes to a close. Mill order files are out to the second or third week of May.
| R/L | APR 29, 2022 | MAR 31, 2022 | +/- |
|---|---|---|---|
| 2×4 | $1,385 | $1,501 | -116 |
| 2×6 | $1,257 | $1,388 | -131 |
| 2×8 | $1,193 | $1,376 | -183 |
| 2×10 | $1,276 | $1,401 | -125 |
| 2×12 | $1,526 | $1,626 | -100 |
| STUDS | APR 29, 2022 | MAR 31, 2022 | +/- |
|---|---|---|---|
| 2×4 – 92 5/8“ | $1,302 | $1,470 | -168 |
| 2×4 – 104 5/8“ | $1,283 | $1,313 | -30 |
| 2×6 – 92 5/8“ | $1,122 | $1,126 | -4 |
| 2×6 4/8“ | $1,411 | $1,551 | -140 |
OSB
OSB saw tremendous downward price pressure due to a slow start to the retail season and transportation issues, pushing levels down $500/m over a 2-week period. It found its bottom around mid month and has continued to push upward to finish off April. Mill order files are currently out until late May / early June.
| OSB | APR 29, 2022 | MAR 31, 2022 | +/- |
|---|---|---|---|
| 3/8″ | $980 | $1,600 | -620 |
| 7/16″ | $980 | $1,600 | -620 |
| 15/32″ | $1,000 | $1,620 | -620 |
| 19/32″ | $1,225 | $1,945 | -720 |
| 23/32″ | $1,455 | $2,175 | -720 |
PLYWOOD
Plywood saw some downward pressure towards the end of April after remaining relatively flat most of the month. Mill order files are back in line at Mid to late May.
| PLYWOOD (STD) | APR 29, 2022 | MAR 31, 2022 | +/- |
|---|---|---|---|
| 9.5 (3/8) | $1,119 | $1,179 | -60 |
| 12.5 (1/2) | $1,492 | $1,572 | -80 |
| 15.5 (5/8) | $1,865 | $1,965 | -100 |
| 18.5 (3/4) | $2,238 | $2,358 | -120 |
| 25.5 | $3,363 | $3,543 | -180 |
Framing Lumber Composite Price
APRIL 29, 2022 LUMBER MARKET REPORT HIGHLIGHTS:
- The framing lumber market continued to see strength in the past week.
- In some sectors, it was seen that buyers took a step back to assess recent purchases.
- Price increases in the Random Lengths Framing Lumber Composite Price ending the six-week downturn.
- Western and Easter S-P-F prices increase early last week.
| This Week | Last Week | Year Ago | |
|---|---|---|---|
| FRAMING LUMBER COMPOSITE PRICE | $1,230 | $1,168 | $1,586 |
| 2×4 #2&BTR KD Western S-P-F | $1,385 | $1,302 | $1,746 |
| 2×6 #2&BTR KD Western S-P-F | $1,257 | $1,183 | $1,752 |
| 2x4x9′ Studs | $1,347 | $1,245 | $1,980 |
| 2x6x9′ Studs | $1,443 | $1,358 | $2,060 |
| 2×10 #2&BTR KD Western S-P-F | $1,405 | $1,295 | $1,847 |
2020-2022 FRAMING LUMBER COMPOSITE PRICE
Structural Panel Composite Price
APRIL 29, 2022 PANEL MARKET REPORT HIGHLIGHTS:
- Structural panel prices decreased as producers struggled to completed orders.
- As order files continue to decrease, OSB mills open to counters, but found minimal buyers wanting to make a firm offer.
- Southern Pine plywood sales were mostly seen to be fill-in purchases, although some mills extended order files and generated some momentum.
- Sheathing prices continues to be low in Western Fir plywood, as most buyer strayed to the sidelines.
- Eastern Canada plywood distributors reported slow sale while continue to wait for late deliveries.
| This Week | Last Week | Year Ago | |
|---|---|---|---|
| ORIENTED STRAND COMPOSITE | $1,073 | $1,008 | $1,582 |
| 3/8″ 4×8 OSB | $980 | $980 | $1,715 |
| 23/32″ 4×8 OSB T&G | $1,455 | $1,455 | $2,085 |
| 3/8″ 4×8 Spruce Plywood | $1,119 | $1,119 | $1,362 |
2020-2022 ORIENTED STRAND BOARD COMPOSITE PRICE
*All Pricing is in CAD