JANUARY 2022 BUILDING MATERIAL MARKET REFLECTION
There doesn’t seem to be a product line that was not affected by the transportation crunch being felt throughout North America to begin 2022. Lack of access to rail cars, trucks and sea containers combined with COVID absenteeism have created a perfect storm. The supply chain feels truly broken with everyone speculating when we might see it get fixed.
Lumber continued to climb for the first three weeks of January finally peaking the last week of the month. It was up 14 weeks in a row if you were keeping track. Everyone will now try to put the PO books away waiting for a downward price correction. With mill order files reaching into mid to late February and the above-mentioned transportation issues it could be some time before we see some price adjustments at the mill level. The next few weeks might be a bit of a standoff seeing who will blink first the mills or buyers.
OSB and Plywood continue to be a challenge for everyone. Lack of available product and transportation issues had most mills off the market making product very difficult to source, and if you could find something you were paying a steep premium. Two major OSB suppliers issued force majeure statements, slowing down production due to the inability to ship finished product. Both Plywood and OSB continues to be moving upward strongly every week. We are seeing shipments currently running 4-6 weeks late from the mills. Even with OSB trading at a strong premium, which would typically see builders shift to plywood. That is not an option right now with lack of available supply.
New orders in truss are very strong to start the year off. Builders are looking to try to catch up on projects they were unable to start in 2021. This strong start to January combined with lumber, OSB supply issues and continued EWP allocations, is creating many challenges for producers and builders alike.
As difficult as all products have been to source some finishing products may be the most challenging right now. Mouldings are almost impossible to find as all producers seem to be waiting for raw materials to arrive via offshore. Trucking is also causing late arrivals of products, putting stress on suppliers and builders. Prices increases have been seen on all product lines to start 2022.