AUGUST 2021 BUILDING MATERIAL MARKET REFLECTION
The market correction in lumber, OSB, and Plywood continued through August. As the month comes to a close it looks like a bottom may have been found. Buyers seem to have a comfort level at current prices and are starting to look to cover fall business. With most of the downside risk out of the market, the question now is what is the upside moving forward?
Although there is a welcome relief from lower lumber prices Engineered Wood products continue to be capped with allocations on joists, beams, and rimboard, which is limiting new sales growth moving forward. Producers continue to try to manage these supply constraints with their current customer base.
The finishing side continues to struggle as MDF raw material supply remains a concern for almost all producers. There is some hope of light at the end of the tunnel as suppliers are optimistic that material expected to arrive in the next month or so should alleviate some pressure.