FEBRUARY 2022 BUILDING MATERIAL MARKET REFLECTION
Transportation issues continue to be the theme across North America. Reduced rail car and truck availability has put extreme pressure on manufacturers across all product lines to get their products to market. Freight rates continue to rise with reports of some carriers asking more than double the previous rates. This combined with continued strong housing starts is creating tremendous challenges in the industry.
Although lumber futures have been up and down in February, the lumber market continues to press higher with upward prices reported across all dimensions. Strong takeaway continues in both the U.S. and Canada as we head into spring. To add to the shipping issues that have plagued the industry this year, mills in Western Canada are starting to pull production off the market either due to;
- The inability to ship products to market, Trucking and rail service.
- The reduced allowable cut is limiting their ability to access logs
- West Fraser informing customers they will be going to 3 days per week production at all their BC mills until the end of March. This is due to a buildup of inventory at the mills as they struggle with transportation.
OSB availability outside of contract loads remains scarce. Mills have been off the market on open market offerings since December. This is creating a large premium between contract prices vs open market prices. Some buyers have looked to plywood as an alternate product, but lack of supply is limiting that option at this time.
Plywood challenges are stemming from late shipments caused by the transportation issues. Some are waiting on product that was scheduled to arrive at the beginning of January. Most mills remain off the market, expect plywood to remain in tight supply until we see some relief in transportation.
Truss orders continue to ramp up based off strong sales, as builders continue their torrid pace. Supply issues and allocations remain on EWP if this pace continues you can expect to see supply issues in the upcoming months.
Finishing products are also feeling the effect of transportation issues as producers continue to wait for raw materials or components to arrive via offshore shipments. Again, we can expect this problem to continue as long as we are dealing with these transportation issues. Price increases continue to impact most product lines as manufacturers try to keep up with escalating raw material costs.
FRAMING LUMBER
Continues to press upwards with strong takeaway on both the Canadian and U.S. sides of the boarder. Mill order files are reaching into late March. That combined with the current transportation issues could mean no price correction in the short term.
| R/L | FEB 28, 2022 | JAN 27, 2022 | +/- |
|---|---|---|---|
| 2×4 | $1,748 | $1,525 | 223 |
| 2×6 | $1,556 | $1,366 | 190 |
| 2×8 | $1,505 | $1,271 | 234 |
| 2×10 | $1,575 | $1,392 | 183 |
| 2×12 | $1,652 | $1,462 | 190 |
| STUDS | FEB 28, 2022 | JAN 27, 2022 | +/- |
|---|---|---|---|
| 2×4 – 92 5/8“ | $1,543 | $1,309 | 234 |
| 2×4 – 104 5/8“ | $1,614 | $1,449 | 165 |
| 2×6 – 92 5/8“ | $1,153 | $1,017 | 136 |
| 2×6 4/8“ | $1,748 | $1,525 | 223 |
OSB
Continues to move upwards at a clip of about $100/M per week. Mills are focusing on contract shipments leaving very little if any open market product available to be had. We are seen deliveries running 3-4 weeks late. mills are considering curtailments due to product not being able to ship and yards filling up.
| OSB | FEB 28, 2022 | JAN 28, 2022 | +/- |
|---|---|---|---|
| 3/8″ | $1,645 | $1,245 | 400 |
| 7/16″ | $1,645 | $1,245 | 400 |
| 15/32″ | $1,665 | $1,265 | 400 |
| 19/32″ | $1,990 | $1,565 | 425 |
| 23/32″ | $2,220 | $1,745 | 475 |
PLYWOOD
Most mills continue to be off the market as shipments continue to run 4-6 weeks late causing issues for stocking dealer. Expect this to continue until we see some relief in transportation.
| PLYWOOD (STD) | FEB 28, 2022 | JAN 28, 2022 | +/- |
|---|---|---|---|
| 9.5 (3/8) | $1,155 | $985 | 170 |
| 12.5 (1/2) | $1,540 | $1,313 | 227 |
| 15.5 (5/8) | $1,925 | $1,642 | 283 |
| 18.5 (3/4) | $2,310 | $1,970 | 340 |
| 25.5 | $3,471 | $2,961 | 510 |
Framing Lumber Composite Price
FEBRUARY 28, 2022 LUMBER MARKET REPORT HIGHLIGHTS:
- Framing lumber prices continuing to rise due to tight supplies and the lack of transportation.
- Amid continue wariness, traders show a higher level of caution towards the market due to the Russian invasion of the Ukraine.
- Mills have maintained control due to supply-demand fundamentals.
| This Week | Last Week | Year Ago | |
|---|---|---|---|
| FRAMING LUMBER COMPOSITE PRICE | $1,669 | $1,544 | $1,282 |
| 2×4 #2&BTR KD Western S-P-F | $1,748 | $1,683 | $1,294 |
| 2×6 #2&BTR KD Western S-P-F | $1,556 | $1,486 | $1,281 |
| 2x4x9′ Studs | $1,716 | $1,651 | $1,559 |
| 2x6x9′ Studs | $1,863 | $1,797 | $1,565 |
| 2×10 #2&BTR KD Western S-P-F | $1,5703 | $1,651 | $1,340 |
2020-2022 FRAMING LUMBER COMPOSITE PRICE
Structural Panel Composite Price
FEBRUARY 28, 2022 PANEL MARKET REPORT HIGHLIGHTS:
- Structural panel traders remain cautious but limited supplied continue to move to increase the price.
- OSB mills continue to remain limited on offerings, but more buyers are taking a more cautious approach.
- Southern Pine plywood trading dissipated due to a lack of offerings, economic factors, and price fatigue.
- Western Fir plywood sales were steady after a sluggish start to the week.
- Sheathing product from Canadian plywood mills continue the to remain limited.
| This Week | Last Week | Year Ago | |
|---|---|---|---|
| ORIENTED STRAND COMPOSITE | $1,770 | $1,684 | $1,184 |
| 3/8″ 4×8 OSB | $1,645 | $1,570 | $1,115 |
| 23/32″ 4×8 OSB T&G | $2,220 | $2,120 | $1,515 |
| 3/8″ 4×8 Spruce Plywood | $1,155 | $1,121 | $1,160 |
2020-2022 ORIENTED STRAND BOARD COMPOSITE PRICE
*All Pricing is in CAD