AUGUST 2022 BUILDING MATERIAL MARKET REFLECTION
The commodity markets saw a slow but steady grind downward in pricing through the month of August. An announcement by West Fraser about some permanent mill curtailments pushed buyers off the fence to fill some immediate needs and allowed mills to build a small order file. As quickly as buyers stepped in, they retreated to the sidelines. With negative news on housing, interest rates and inflation in both Canada and the U.S. everyone is taking a cautious approach heading into the fall.
Lumber saw 10% -13% price decreases across all widths. With current business still being strong, buyers looked to cover short term needs while not feeling overly confident about the health of the market heading into the fall season.
OSB prices held for most of the month but finally succumbed to downward pressure the last couple of weeks. Showing a 10% fall in pricing on posted numbers, but pricing on the cash market showed a 15% decrease as a local Western mill looked to move production.
Plywood pricing was flat for the month but mill order files are shrinking and wholesalers looked to move contract loads to minimize the downward risk.
Truss order files continue to grow with production struggling to keep ahead of sales. With the U.S. market slowing joist is starting to look better heading into the fall. LVL continues to be an issue due to veneer shortages. All reports are, expect that to continue through the rest of this year.
Building materials are continuing to show some supply issues with LP Smart Panel and trim, exterior drywall and Tyvek housewrap, currently the three biggest challenges
Finishing products production continues to remain in good shape, with the only issues being the odd logistics’ problem.
Looking Through the Crystal Ball
At current prices we can expect mills to look at further curtailments, which could push buyers off the fence once again. With the fall historically being some of our busiest months and most suppliers running lean inventories to minimize downside risk, it feels like we could see one more significant buy in on the horizon.
The market continues to feel soft. Buyers have kept inventories lean and mills are running out of order files. Who will blink first? Don’t be surprised if another mill curtailment announcement is coming which could push buyers off the fence.
|R/L||AUG 26, 2022||JULY 29, 2022||+/-|
|STUDS||AUG 26, 2022||JULY 29, 2022||+/-|
|2×4 – 92 5/8“||$576||$673||-97|
|2×4 – 104 5/8“||$692||$821||-129|
|2×6 – 92 5/8“||$556||$680||-124|
OSB also feels soft heading into September. If you need it buy it but if you, don’t you may want to wait and see where pricing goes.
|OSB||AUG 26, 2022||JULY 29, 2022||+/-|
Plywood currently remains flat but with the downward pressure on lumber and OSB expect plywood to soon follow.
|PLYWOOD (STD)||AUG 26, 2022||JULY 29, 2022||+/-|
Framing Lumber Composite Price
AUGUST 26, 2022 LUMBER MARKET REPORT HIGHLIGHTS:
- Uncertainty with the stability of the real estate market created la decline in buyer interests.
- Western S-P-F mills decreased quotes throughout the week.
- September futures contract waivered between gains and losses through out the week.
- Western S-P-F stud lumber hit a standstill.
|This Week||Last Week||Year Ago|
|FRAMING LUMBER COMPOSITE PRICE||$761||$791||$492|
|2×4 #2&BTR KD Western S-P-F||$711||$776||$499|
|2×6 #2&BTR KD Western S-P-F||$608||$653||$417|
|2×10 #2&BTR KD Western S-P-F||$997||$1,035||$569|
2020-2022 FRAMING LUMBER COMPOSITE PRICE
Structural Panel Composite Price
AUGUST 26, 2022 PANEL MARKET REPORT HIGHLIGHTS:
- OSB demand decreased due to the slow of single-family home construction.
- Trading was most active in Mountain States and Western Canada.
- Western Plywood sales actively slowed, prompting producers to counter offers.
- Canadian plywood traders showed little urgency to purchase any more than their near-term needs.
|This Week||Last Week||Year Ago|
|ORIENTED STRAND COMPOSITE||$571||$600||$670|
|3/8″ 4×8 OSB||$520||$545||$495|
|23/32″ 4×8 OSB T&G||$875||$900||$1,055|
|3/8″ 4×8 Spruce Plywood||$749||$749||$539|
2020-2022 ORIENTED STRAND BOARD COMPOSITE PRICE
*All Pricing is in CAD