AUGUST 2023 BUILDING MATERIAL MARKET REFLECTION
August began with the same sluggish tone July finished on. It felt like we were poised for a correction in pricing. But as we hit mid-August the standoff between producers and buyers came to a head. With mills looking to move inventory and with lean inventory levels in the market, a bottom was established and a round of buying took place.
New Residential Construction Press Release (census.gov)
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Even with the late month rally lumber prices still finished down month over month. 2×4 (-2%) and 2×6 (-10%) and 2×8 (+2%) and 2×10 (-10%). Studs were also moderately down, 2×4 (-3%) and 2×6 (-5%). Mill order files are stretching into the second or third week of September.
OSB topped out in August and began a correction of (-7%). As the month comes to a close it looks like this correction may be done for now. Mills are reporting continued strong sales from the box stores and product outside of monthly contracts remains difficult to source.
Plywood prices mirrored the correction of OSB coming off (-10%), and the market continues to feel soft heading into September.
Truss order files are coming in at a strong pace. We continue to hear of some EWP supply issues hitting some markets with extended lead times of up to 16 weeks. Right now, this seems to be limited to one or two suppliers, but it is something to keep an eye on.
The supply chain continues to be good in most products, outside of the odd logistical issue most products are arriving on or close to the scheduled delivery dates.
Looking Through the Crystal Ball
The fall season can be some of the busiest months in the building materials industry and this year looks to be no different. With mill order files into mid-September on lumber, and OSB even further out into October, which should see pricing remain in a narrow trading range for the short term. Expect buyers to continue to keep their inventories as lean as possible as higher interest rates will keep borrowing costs high.
FRAMING LUMBER
Even with a late month rally lumber finished down month over month. 2×6 is no longer carrying a premium to 2×4 in the market. Mill order files are into the second or third week of September.
| R/L | AUGUST 31, 2023 | JULY 28, 2023 | +/- |
|---|---|---|---|
| 2×4 | $568 | $581 | -2 |
| 2×6 | $510 | $567 | -10 |
| 2×8 | $575 | $565 | 2 |
| 2×10 | $535 | $596 | -10 |
| 2×12 | $758 | $811 | -7 |
| STUDS | AUGUST 31, 2023 | JULY 28, 2023 | +/- |
|---|---|---|---|
| 2×4 – 92 5/8“ | $548 | $567 | -3 |
| 2×4 – 104 5/8“ | $589 | $617 | -5 |
| 2×6 – 92 5/8“ | $430 | $455 | -5 |
| 2×6 4/8“ | $683 | $706 | -3 |
OSB
We saw OSB have a correction in price towards the end of August. This correction looks to be finished as the month closes out. There is very little product available outside of contract sales.
| OSB | AUGUST 31, 2023 | JULY 28, 2023 | +/- |
|---|---|---|---|
| 3/8″ | $700 | $750 | -7 |
| 7/16″ | $700 | $750 | -7 |
| 15/32″ | $720 | $770 | -7 |
| 19/32″ | $850 | $905 | -6 |
| 23/32″ | $980 | $1,035 | -6 |
PLYWOOD
Followed the price correction we have seen in OSB, although this price correction doesn’t seem finished yet as we head into September.
| PLYWOOD (STD) | AUGUST 31, 2023 | JULY 28, 2023 | +/- |
|---|---|---|---|
| 9.5 (3/8) | $586 | $654 | -10 |
| 12.5 (1/2) | $781 | $872 | -10 |
| 15.5 (5/8) | $977 | $1,090 | -10 |
| 18.5 (3/4) | $1,172 | $1,308 | -10 |
| 25.5 | $1,770 | $1,974 | -10 |
Framing Lumber Composite Price
AUGUST 25, 2023 LUMBER MARKET REPORT HIGHLIGHTS:
- Framing lumber sales increased due to natural disasters and increasing interest rates.
- Western S-P-F buyers stepped in at the end of the week to cover immediate needs.
- There was mixed trading in the September and November futures contacts throughout the week.
- Stud lumber saw a substantial carryover in pace from the previous week.
| This Week | Last Week | Year Ago | |
|---|---|---|---|
| FRAMING LUMBER COMPOSITE PRICE | $575 | $570 | $761 |
| 2×4 #2&BTR KD Western S-P-F | $566 | $548 | $711 |
| 2×6 #2&BTR KD Western S-P-F | $511 | $501 | $608 |
| 2x4x9′ Studs | $623 | $602 | $757 |
| 2x6x9′ Studs | $752 | $751 | $925 |
| 2×10 #2&BTR KD Western S-P-F | $692 | $687 | $997 |
2020-2023 FRAMING LUMBER COMPOSITE PRICE
Structural Panel Composite Price
AUGUST 25, 2023 PANEL MARKET REPORT HIGHLIGHTS:
- In most markets, OSB prices continued to hold with some discounts in northern markets.
- Quick shipments were offered in select markets.
- Western plywood mills reported a generally quiet week.
- Canadian plywood traders report a standoff between mills and buyers as they try to secure lower pricing.
| This Week | Last Week | Year Ago | |
|---|---|---|---|
| ORIENTED STRAND COMPOSITE | $766 | $776 | $571 |
| 3/8″ 4×8 OSB | $705 | $730 | $520 |
| 23/32″ 4×8 OSB T&G | $985 | $1,015 | $875 |
| 3/8″ 4×8 Spruce Plywood | $616 | $628 | $749 |
2020-2023 ORIENTED STRAND BOARD COMPOSITE PRICE
*All Pricing is in CAD