JUNE 2021 BUILDING MATERIAL MARKET REFLECTION
June brought the price correction in lumber that everyone was waiting for, and it was in record-breaking fashion. Buyers have put the PO books away, trying to ride this downturn to the bottom before buying back in. It looks like a combination of exaggerated order files, increased production, and slow box store sales contribute to this dramatic price correction. While OSB and Plywood remained relatively flat, all eyes were waiting to see if the other shoe would drop on panel pricing.
Despite a lack of product offered at the mill level, we have witnessed secondaries uneasy about the market offering out contracts to keep their inventories in line.
The bottleneck on most building projects continues to be the lack of availability on EWP, plates, and hangers – as all these items are still under strict allocations. Extended lead times in truss production are something to keep an eye on. Drywall joins the list of products now on allocations causing availability issues with exterior drywall, which many builders have switched to as an alternative product to panels.