JANUARY 2023 BUILDING MATERIAL MARKET REFLECTION
January began with its traditional slow start, as many shook off the holiday season cobwebs. Some substantial production curtailment announcements led by Canfor towards the end of the month, combined with lean inventories quickly firmed up the market and allowed mills to push lumber prices up 15%-20% on 2×4 and 2×6. Wides were more restrained with an increase of 2%-5%, and order files are reported out through February.
OSB seems to have found its bottom with one major producer drawing a line in the sand on pricing. It feels like we might bounce around current levels for a while until either demand picks up or some production is taken out of the market.
Plywood finally showed some cracks and prices grinded down as the month progressed. But it quickly firmed up on the heels of the lumber buy-in. Mills have been able to push out order files into March.
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 supply 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 forward.
Looking Through the Crystal Ball
With the recent curtailment announcements, it looks like mills have been able to bring supply and demand closer to a balance. It remains to be seen if there will be sustainable follow-through going forward to keep prices at current levels or higher. Keep in mind the biggest lumber producer in the world hasn’t announced any major production curtailments yet. If they do it will set this market on its ear.
FRAMING LUMBER
Some substantial curtailment announcements pushed buyers and wholesalers into the market giving mills the opportunity to push prices and order files. Will there be enough follow through buying to keep prices moving upwards?
| R/L | JAN 26, 2023 | DEC 27, 2022 | +/- |
|---|---|---|---|
| 2×4 | $555 | $467 | 19 |
| 2×6 | $669 | $589 | 14 |
| 2×8 | $608 | $595 | 2 |
| 2×10 | $722 | $697 | 4 |
| 2×12 | $963 | $981 | -2 |
| STUDS | JAN 26, 2023 | DEC 27, 2022 | +/- |
|---|---|---|---|
| 2×4 – 92 5/8“ | $368 | $311 | 18 |
| 2×4 – 104 5/8“ | $495 | $440 | 13 |
| 2×6 – 92 5/8“ | $388 | $338 | 15 |
| 2×6 4/8“ | $702 | $629 | 12 |
OSB
OSB looks like its found a bottom. It feels like it might hover around these levels until either demand picks up or there is supply taken out of the market.
| OSB | JAN 27, 2023 | DEC 26, 2022 | +/- |
|---|---|---|---|
| 3/8″ | $325 | $365 | -12 |
| 7/16″ | $325 | $365 | -12 |
| 15/32″ | $345 | $385 | -12 |
| 19/32″ | $505 | $545 | -8 |
| 23/32″ | $615 | $655 | -7 |
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
JANUARY 8, 2023 LUMBER MARKET REPORT HIGHLIGHTS:
- Framing lumber sales and prices increased with the news of drastic cuts being made in the industry.
- Western S-P-F buyers stepped in to secure coverage with the movement in the industry.
- The lumbers futures market had a mix of gains throughout the week.
- Stud lumber saw a increase in price due to the tighten in supply.
| This Week | Last Week | Year Ago | |
|---|---|---|---|
| FRAMING LUMBER COMPOSITE PRICE | $582 | $525 | $1,559 |
| 2×4 #2&BTR KD Western S-P-F | $612 | $486 | $1,525 |
| 2×6 #2&BTR KD Western S-P-F | $698 | $620 | $1,366 |
| 2x4x9′ Studs | $625 | $472 | $1,538 |
| 2x6x9′ Studs | $864 | $708 | $1,652 |
| 2×10 #2&BTR KD Western S-P-F | $899 | $851 | $1,519 |
2020-2023 FRAMING LUMBER COMPOSITE PRICE
Structural Panel Composite Price
JANUARY 30, 2023 PANEL MARKET REPORT HIGHLIGHTS:
- OSB sales failed to match the pace with the current curtailment.
- Many traders reported slower inquires and sales from their customers.
- Western Plywood sales subsided the last few days of the week.
- Canadian producers continued to discount volume purchases.
| This Week | Last Week | Year Ago | |
|---|---|---|---|
| ORIENTED STRAND COMPOSITE | $397 | $390 | $1,368 |
| 3/8″ 4×8 OSB | $325 | $340 | $1,245 |
| 23/32″ 4×8 OSB T&G | $615 | $630 | $1,745 |
| 3/8″ 4×8 Spruce Plywood | $643 | $686 | $985 |
2020-2022 ORIENTED STRAND BOARD COMPOSITE PRICE
*All Pricing is in CAD