DECEMBER 2021 BUILDING MATERIAL MARKET REFLECTION
The lumber market continued its upward momentum through December jumping triple digits on all items. Strong U.S. takeaway and continued transportation issues were the main drivers as mills were able to establish strong order files into late January.
OSB and plywood mirrored lumber’s strong run to close out the year, with strong takeaway and tight supply look, for panels, to have a strong first quarter to the year.
Truss production continued to be strong, as it has been for most of the year. This looks like it will continue as the calender rolls into 2022, as strong market conditions and allocations continue into at least the first half of 2022.
We are seeing pockets of positivity on the finishing side as raw material that was expected months ago is starting to arrive, allowing producers to get caught up on a short-term basis with orders. We expect supply to continue to be hit-and-miss as we enter the new year.
As we close out 2021, we look back on a very volatile year caused by strong housing markets in both the United States and Canada, world wide supply chain issues and transportation challenges. This caused supply issues in almost every building material product line at some point.
Looking forward, it looks like we can expect more of the same to start the new year. Lumber, OSB and plywood markets continue to be volatile, and supply chains continue to struggle to keep up with strong demand in both the U.S. and Canada. This strong demand looks to continue as we start 2022.
We at Star Building Materials would like to wish everyone a healthy and happy 2022.