FEBRUARY 2023 BUILDING MATERIAL MARKET REFLECTION
There was little follow through to the late January buy in we saw. Mills tried to push prices too hard, too fast and buyers retreated to the sidelines, comfortable with there inventory position and filling in with distribution wood as needed. As February comes to a close, mills order files are depleting and they are starting to aggressively look for orders.
New Residential Construction Press Release (census.gov)
Lumber showed modest declines of 5%-7% on 2×4-2×6, Wides 2×8, 2×10 and 2×12 were relatively flat. Studs were up 5%-10% for the month. Prices remains soft with downward pressure as we move into March.
OSB continues to bounce around the bottom with no change in pricing for the past 4-5 weeks. Expect that to continue unless there is a major announcement of production being taken off the market.
Plywood was also flat the past month, but mills have reportedly sold their production out through March. Select grades are difficult to source right now and are currently trading at a bit of a premium in the market.
We are seeing truss production finally catching up as new orders have begun to soften. Multifamily projects continue to lead the way over single family. Supply on LVL and joist is back to normal conditions, and price decreases are starting to hit the market.
Most other building materials and finish products remains in good stead. Some products coming from overseas are running behind schedule. Exterior drywall is still exceedingly difficult to source. We expect to see some price decreases moving into quarter two. Most of the delays we see are due to logistics as trucks have been difficult to source.
Looking Through the Crystal Ball
As pricing continues to retreat back to January low’s it looks like more production needs to be taken out of the supply chain to find some balance. One thing to consider is it is still just February, and most of North America has been hit with unfavourable weather this month. The calendar flipping to March can sometimes give a renewed optimism to the market as we are that much closer to spring.
FRAMING LUMBER
The run in the market we saw after some production curtailment announcements never gained any traction and we are seeing prices come back down to the January lows. It looks like more curtailments are needed to bring supply and demand in balance.
| R/L | FEB 2, 2023 | JAN 26, 2023 | +/- |
|---|---|---|---|
| 2×4 | $528 | $555 | -5 |
| 2×6 | $623 | $669 | -7 |
| 2×8 | $623 | $608 | 2 |
| 2×10 | $718 | $722 | -1 |
| 2×12 | $961 | $963 | 0 |
| STUDS | FEB 23, 2023 | JAN 26, 2023 | +/- |
|---|---|---|---|
| 2×4 – 92 5/8“ | $379 | $368 | 3 |
| 2×4 – 104 5/8“ | $521 | $495 | 5 |
| 2×6 – 92 5/8“ | $440 | $388 | 13 |
| 2×6 4/8“ | $751 | $702 | 7 |
OSB
Continues to bounce along at the perceived bottom with no changes in the past 4-5 weeks. This looks to continue until some production is taken off the market.
| OSB | FEB 24, 2023 | JAN 27, 2023 | +/- |
|---|---|---|---|
| 3/8″ | $325 | $325 | 0 |
| 7/16″ | $325 | $325 | 0 |
| 15/32″ | $345 | $345 | 0 |
| 19/32″ | $505 | $505 | 0 |
| 23/32″ | $615 | $615 | 0 |
PLYWOOD
Plywood grinded down most of January but firmed up on the heels of lumber. Order files are reported into March.
| PLYWOOD (STD) | JAN 27, 2023 | DEC 26, 2022 | +/- |
|---|---|---|---|
| 9.5 (3/8) | $650 | $753 | -14 |
| 12.5 (1/2) | $867 | $1,004 | -14 |
| 15.5 (5/8) | $1,083 | $1,255 | -14 |
| 18.5 (3/4) | $1,300 | $1,506 | -14 |
| 25.5 | $1,962 | $2,265 | -13 |
Framing Lumber Composite Price
FEBRUARY 24, 2023 LUMBER MARKET REPORT HIGHLIGHTS:
- The decline in the Framing Lumber market became more pronounced.
- Western S-P-F prices continue to decline with mills rejecting counters.
- The decline in March futures continued throughout the week.
- Canadian stud lumber continued to slow in pace.
| This Week | Last Week | Year Ago | |
|---|---|---|---|
| FRAMING LUMBER COMPOSITE PRICE | $575 | $587 | $1,669 |
| 2×4 #2&BTR KD Western S-P-F | $528 | $570 | $1,748 |
| 2×6 #2&BTR KD Western S-P-F | $623 | $657 | $1,556 |
| 2x4x9′ Studs | $562 | $597 | $1,716 |
| 2x6x9′ Studs | $833 | $858 | $1,863 |
| 2×10 #2&BTR KD Western S-P-F | $868 | $887 | $1,703 |
2020-2023 FRAMING LUMBER COMPOSITE PRICE
Structural Panel Composite Price
FEBRUARY 24, 2023 PANEL MARKET REPORT HIGHLIGHTS:
- The OSB market prices stayed level throughout the week.
- Weather was a large topic of conversation due to the frigid temperatures across many regions.
- Western plywood limited activity kept pricing from increasing in large amounts.
- The Canadian Plywood market sustained its current level of activity.
| This Week | Last Week | Year Ago | |
|---|---|---|---|
| ORIENTED STRAND COMPOSITE | $409 | $406 | $1,770 |
| 3/8″ 4×8 OSB | $325 | $325 | $1,645 |
| 23/32″ 4×8 OSB T&G | $615 | $615 | $2,220 |
| 3/8″ 4×8 Spruce Plywood | $643 | $643 | $1,155 |
2020-2022 ORIENTED STRAND BOARD COMPOSITE PRICE
*All Pricing is in CAD