JULY 2021 BUILDING MATERIAL MARKET REFLECTION
Lumber prices continued to erode throughout July, finally hitting a bottom towards the end of the month. With some mills announcing production curtailments and the ongoing threat of forest fires, combined with the massive price adjustment gave some buyers the confidence to come back into the market. Plywood and OSB pricing have now started their correction as well with large pricing concessions being seen each week through July. Mill order files that we were previously projected to reach into the 4th quarter of 2021 it seems were based on contract sales, that we are hearing through the grapevine have been cancelled. This decimated order files and brought large volumes of prompt product to the marketplace.
The story on Engineered Wood products has not changed much. Volume allocations continue to limit availability on Joist, Beams and Rimboard. We are seeing availability on plates and hangers improve with some allocations coming off products, which is good news to truss manufacturers. MDF supply issues continues to have a massive impact on the finishing market, affecting baseboard and casing. Delays caused by ocean freight and back logs at the ports on raw materials do not look to be going away anytime soon.