APRIL 2023 BUILDING MATERIAL MARKET REFLECTION
Despite mills and buyers hopes for a significant spring buy in, the tone of the market in April was somber. It feels like supply and demand are in balance and unless we see a significant change on either side, we will continue in this narrow trading range.
New Residential Construction Press Release (census.gov)
https://ca.finance.yahoo.com/news/homebuilders-ride-d-r-horton-183347453.html
Lumber saw little movement price wise month over month with 2×4 and 2×6 showing little change, Wides 2×8, 2×10 were a little softer with an 11%-13% decrease. 2×4-92 5/8” stud posted a 10% gain for the month, while other trims remained flat.
OSB found some traction spiking up 20% as a significant block of product was taken off the market by a large U.S. retailer. This took mill order files out into June shipment and the majority of Western mills have pulled off the market to reevaluate their positions. With very little wood available on the cash market, expect prices to continue to rise and supply to be tight.
Plywood also posted gains for the month up 4% as mills were able to take order files into end of May shipment.
New orders into truss were down for but the pipeline for May and June looks to be ramping up. EWP supply continues to be very good,
Other building materials and finish products supply remains good. A couple items, exterior drywall and fire code drywall are still challenging but seem to be slowly getting better. We continue to see price decreases filtering on a few items.
Looking Through the Crystal Ball
While the spring buy everyone was expecting hasn’t yet materialized, there are strong signals that the second quarter is showing some pent-up demand. With OSB and Plywood starting to move many are expecting lumber to follow. Mills have dug their heels in on pricing hoping for the same thing. If lumber does follow panels on a run, many buyers could get caught as everyone has grown comfortable with just in time shipments.
FRAMING LUMBER
Lumber was very flat through the month as supply and demand felt in balance, keeping prices in a narrow trading range. Mill order files are currently running 2 weeks or sooner.
| R/L | APR 28, 2023 | MAR 30, 2023 | +/- |
|---|---|---|---|
| 2×4 | $477 | $474 | 1 |
| 2×6 | $561 | $576 | -3 |
| 2×8 | $443 | $508 | -13 |
| 2×10 | $504 | $569 | -11 |
| 2×12 | $919 | $914 | 1 |
| STUDS | APR 28, 2023 | MAR 30, 2023 | +/- |
|---|---|---|---|
| 2×4 – 92 5/8“ | $456 | $413 | 10 |
| 2×4 – 104 5/8“ | $538 | $521 | 3 |
| 2×6 – 92 5/8“ | $443 | $433 | 2 |
| 2×6 4/8“ | $729 | $738 | -1 |
OSB
Found its bottom and pushed up on the heels of a large retailer in the US making a significant buy. Mill order files pushed out until June with very little cash wood available, so expect numbers to continue to increase and supply to tighten up.
| OSB | APR 28, 2023 | MAR 30, 2023 | +/- |
|---|---|---|---|
| 3/8″ | $380 | $295 | 22 |
| 7/16″ | $380 | $295 | 22 |
| 15/32″ | $400 | $315 | 21 |
| 19/32″ | $545 | $455 | 17 |
| 23/32″ | $660 | $565 | 14 |
PLYWOOD
Also found its bottom and saw prices move up. Order files are out through May with most producers.
| PLYWOOD (STD) | MAR 30, 2023 | MAR 30, 2023 | +/- |
|---|---|---|---|
| 9.5 (3/8) | $596 | $572 | 4 |
| 12.5 (1/2) | $795 | $763 | 4 |
| 15.5 (5/8) | $993 | $953 | 4 |
| 18.5 (3/4) | $1,192 | $1,144 | 4 |
| 25.5 | $1,800 | $1,728 | 4 |
Framing Lumber Composite Price
APRIL 28, 2023 LUMBER MARKET REPORT HIGHLIGHTS:
- Framing lumber saw a mix in trading with demand for key commodities low regardless of the seasonal weather.
- Western S-P-F had low demand causing prices to become flat.
- The May futures contract decreased during the week trading a heavy discount.
| This Week | Last Week | Year Ago | |
|---|---|---|---|
| FRAMING LUMBER COMPOSITE PRICE | $575 | $573 | $1,230 |
| 2×4 #2&BTR KD Western S-P-F | $478 | $478 | $1,385 |
| 2×6 #2&BTR KD Western S-P-F | $561 | $566 | $1,257 |
| 2x4x9′ Studs | $565 | $546 | $1,347 |
| 2x6x9′ Studs | $770 | $761 | $1,443 |
| 2×10 #2&BTR KD Western S-P-F | $655 | $668 | $1,406 |
2020-2023 FRAMING LUMBER COMPOSITE PRICE
Structural Panel Composite Price
APRIL 28, 2023 PANEL MARKET REPORT HIGHLIGHTS:
- OSB mills had steady demand with buyer complaints of limited supply.
- Western plywood prices were driven up by the warm weather.
- As sales increase, many counter offers are not being accepted.
- Canadian plywood sales slowed as the previous week’s momentum decreased.
| This Week | Last Week | Year Ago | |
|---|---|---|---|
| ORIENTED STRAND COMPOSITE | $469 | $442 | $1,073 |
| 3/8″ 4×8 OSB | $380 | $345 | $980 |
| 23/32″ 4×8 OSB T&G | $660 | $615 | $1,455 |
| 3/8″ 4×8 Spruce Plywood | $596 | $584 | $1,119 |
2020-2022 ORIENTED STRAND BOARD COMPOSITE PRICE
*All Pricing is in CAD