JUNE 2024 BUILDING MATERIAL MARKET REFLECTION
Building Material Market Overview
A lower-than-expected U.S. Housing report increased downward pressure on the commodities market. With supply readily available buyers continue to stay with the “buy as needed” approach avoiding taking a longer inventory position. Renewed concerns of slow to drop interest rates and affordability continue to keep the market depressed. The term “Housing Recession” even came up this week.
New Residential Construction Press Release (census.gov)
Canada Housing Starts (tradingeconomics.com)
Lumber continues to face downward price pressure as supply exceeds demand on most items. Inventories continues to build as mills search for a level to move volume.
The bottom fell out of OSB through June as pricing came off -30% or more. It looks like it may be finding a bottom heading into July, the question is how much upside is there, if any.
Plywood continues to slowly grind down as demand from Eastern Canada continues to struggle.
EWP orders remain strong locally but are challenging in other markets throughout North America. The negative U.S. Housing report did not help matters. Supply continues to be in good stead.
Looking Through the Crystal Ball
The combination of increasing inventories, tepid demand, and anticipated summer shutdowns at mills highlights the challenges ahead. High interest rates and affordability issues further exacerbate the situation, making it difficult to generate upward momentum. The upcoming polarizing U.S. election adds an additional layer of uncertainty, contributing to the cautious outlook. This confluence of factors suggests that the market may remain stagnant or face downward pressure in the near term.
FRAMING LUMBER
| R/L | JUNE 27, 2024 | MAY 30, 2024 | +/- |
|---|---|---|---|
| 2×4 | $463 | $518 | -11 |
| 2×6 | $468 | $504 | -7 |
| 2×8 | $542 | $532 | 2 |
| 2×10 | $548 | $559 | -2 |
| 2×12 | $746 | $747 | 0 |
| STUDS | JUNE 27, 2024 | MAY 30, 2024 | +/- |
|---|---|---|---|
| 2×4 – 92 5/8“ | $418 | $455 | -8 |
| 2×4 – 104 5/8“ | $431 | $473 | -9 |
| 2×6 – 92 5/8“ | $349 | $356 | -2 |
| 2×6 5/8“ | $472 | $486 | -3 |
OSB
OSB started to gain momentum, after first finding a bottom, as buyers looked to restock in both Canada and the U.S.
| OSB | JUNE 27, 2024 | MAY 30, 2024 | +/- |
|---|---|---|---|
| 3/8″ | $490 | $635 | -30 |
| 7/16″ | $490 | $635 | -30 |
| 15/32″ | $510 | $655 | -28 |
| 19/32″ | $640 | $785 | -23 |
| 23/32″ | $760 | $915 | -20 |
PLYWOOD
Plywood continues to slowly grind down as demand from Eastern Canada continues to struggle.
| PLYWOOD (STD) | JUNE 27, 2024 | MAY 30, 2024 | +/- |
|---|---|---|---|
| 9.5 (3/8) | $553 | $587 | -6 |
| 12.5 (1/2) | $737 | $783 | -6 |
| 15.5 (5/8) | $922 | $978 | -6 |
| 18.5 (3/4) | $1,106 | $1,174 | -6 |
| 25.5 (1) | $1,671 | $1,773 | -6 |
Framing Lumber Composite Price
JUNE 27, 2024 LUMBER MARKET REPORT HIGHLIGHTS:
- Framing lumber continues to experience low demand with a lack of sales activity.
- Western S-P-F sales have yet to pick up and prices remained on a downward trend.
- Lumber futures dipped lower this week, despite what seemed to be an upwards trajectory during the throughout part of the week.
- Stud lumber was sold at discounted prices this week. Most producers traded at lower levels.
| This Week | Last Week | Year Ago | |
|---|---|---|---|
| FRAMING LUMBER COMPOSITE PRICE | $501 | $514 | $551 |
| 2×4 #2&BTR KD Western S-P-F | $463 | $489 | $533 |
| 2×6 #2&BTR KD Western S-P-F | $468 | $484 | $553 |
| 2x4x9′ Studs | $455 | $476 | $579 |
| 2x6x9′ Studs | $527 | $534 | $757 |
| 2×10 #2&BTR KD Western S-P-F | $548 | $559 | $513 |
2020-2024 FRAMING LUMBER COMPOSITE PRICE
Structural Panel Composite Price
JUNE 27, 2024 PANEL MARKET REPORT HIGHLIGHTS:
- OSB sales gained momentum as buyers looked to restock in both Canada and the U.S.
- Most markets saw prices bottoming out midway through the week.
- Western plywood saw many producers receiving low-ball offers. With some mills willing to negotiate,
most stayed firm with their quotes. - Canadian plywood experienced higher levels of inquiries while most buyers were purchasing only what they needed.
| This Week | Last Week | Year Ago | |
|---|---|---|---|
| ORIENTED STRAND COMPOSITE | $482 | $494 | $526 |
| 3/8″ 4×8 OSB | $490 | $510 | $440 |
| 23/32″ 4×8 OSB T&G | $760 | $780 | $725 |
| 3/8″ 4×8 Spruce Plywood | $553 | $564 | $577 |
2020-2024 ORIENTED STRAND BOARD COMPOSITE PRICE
*All Pricing is in CAD