MAY 2021 BUILDING MATERIAL MARKET REFLECTION
The month of May came in like a lion but went out like a lamb. There was a lot of speculation towards the end of May that pricing on lumber had peaked, and with future contracts posting limit down price adjustments over seven consecutive days, it only added fuel to the fire. Panels remained firm on pricing, with supplies being tight and strong order files at the mills. EWP continues to remain a challenge, with allocations now on most products and supplies chasing strong demand. Finishing is also struggled with supply issues and allocations, causing buyers to scramble to support current business.
FRAMING LUMBER
For the first half of May, lumber continued on cruise control much like it had been doing for the previous 2-3 months. Mill order files stretched into June, and prices continued to rise. As the month comes to a close, the market felt like it has reached its peak, and prices are starting to level off. Some secondaries have discounted pre-bought lumber as there is an uneasy feeling in the market for the first time in months. With order files into mid to late June, we don’t expect to see any significant price concessions at the mill level until closer to the end of June.
| R/L | May 28, 2021 | APR 30, 2021 | +/- |
|---|---|---|---|
| 2×4 | $1,935 | $1,746 | $189 |
| 2×6 | $1,947 | $1,752 | $195 |
| 2×8 | $1,857 | $1,629 | $228 |
| 2×10 | $1,841 | $1,728 | $213 |
| 2×12 | $1,960 | $1,709 | $251 |
| STUDS | MAY 28, 2021 | APR, 2021 | +/- |
|---|---|---|---|
| 2×4 – 92 5/8“ | $1,851 | $1,611 | $240 |
| 2×4 – 104 5/8“ | $2,117 | $1,924 | $193 |
| 2×6 – 92 5/8“ | $1,778 | $1,537 | $241 |
| 2×6 – 104 4/8“ | $2,195 | $1,980 | $215 |
Pricing: CAD
OSB
The shutdowns at mills for required maintenance are over, but production issues are still plaguing many OSB producers. Even with the switch to an alternative product, demand still outpaces supply. Most mills are focusing on contract business, leaving very little availability on the open market. Prices will continue to increase at a moderate pace through June.
| OSB | MAY 28, 2021 | APR 30, 2021 | +/- |
|---|---|---|---|
| 3/8″ | $1,900 | $1,815 | $85 |
| 7/16″ | $1,900 | $1,815 | $85 |
| 15/32″ | $1,920 | $1,835 | $85 |
| 19/32″ | $2,265 | $2,150 | $115 |
| 23/32″ | $2,410 | $2,285 | $125 |
Pricing: CAD
PLYWOOD
Plywood continued its rise through May, with many mills able to stretch order files out until October. If this trend continues, production at the mills for 2021 could be covered in the next couple of months. The price increases in plywood have started to close the gap with OSB.
| PLYWOOD (STD) | MAY 28, 2021 | APR 30, 2021 | +/- |
|---|---|---|---|
| 9.5 (3/8) | $1,660 | $1,390 | $270 |
| 12.5 (1/2) | $2,213 | $1,853 | $360 |
| 15.5 (5/8) | $2,767 | $2,317 | $450 |
| 18.5 (3/4) | $3,320 | $2,780 | $540 |
| 25.5 (1) | $4,986 | $4,176 | $810 |
Pricing: CAD
ENGINEERED WOOD PRODUCTS
The good news for the truss manufacturers is lumber pricing is stabilizing, and the hopes of price concessions are on the horizon. Allocations are in place on hangers/plates/columns.
Supply is still an issue with these items as the price of steel keeps rising, driving the prices of hangers/plates/columns up.
EWP is still under strict allocations, and we continue to see price increases as demand outpaces supply by a wide margin. One of the biggest challenges for many producers is access to supply on rim board as mills have just come back online and are inundated with orders.
FINISHING PRODUCTS
The challenges in finishing are relentless at the moment as manufacturers continue to struggle with raw material shortages. Most manufacturers have put customers on allocations as they try to manage increased demand with limited supply availability. Expect prices to continue to increase moving forward as this appears to be a longer-term issue.
Framing Lumber Composite Price
MAY 21, 2021 LUMBER MARKET REPORT HIGHLIGHTS:
- Mixed trends in framing lumber were seen this week with significant weakness in Southern Pine and Eastern S-P-F contrasted.
- Green Douglas Fir and Coast dry Fir and Hem-Fir continue to gain momentum.
- Overall weakness in the market dropped the Framing Lumber Composite Price a bit from last weeks high.
- That markets the first decline in the composite since a three-week downturn in mid- to late March.
| This Week | Last Week | Year Ago | |
|---|---|---|---|
| FRAMING LUMBER COMPOSITE PRICE | $1,807 | $1,831 | $598 |
| 2×4 #2&BTR KD Western S-P-F | $1,935 | $1,971 | $514 |
| 2×6 #2&BTR KD Western S-P-F | $1,947 | $1,977 | $461 |
| 2x4x9′ Studs | $2,165 | $2,201 | $588 |
| 2x6x9′ Studs | $2,280 | $2,280 | $570 |
| 2×10 #2&BTR KD Western S-P-F | $2,062 | $2,080 | $639 |
2020-2021 FRAMING LUMBER COMPOSITE PRICE
Structural Panel Composite Price
MAY 21, 2021 PANEL MARKET REPORT HIGHLIGHTS:
- Holidays in the U.S. and Canada contributed to the quieter tone in structural panel trading.
- OSB trading slowed as the week continued. Sparse open-market offerings were a lingering constraint.
- Southern Pine plywood sales were steady, but the coming U.S. holiday and extended order files prompted most buyers to ease replenishment efforts.
- The pace of trading eased in western Fir plywood, as did price appreciation.
- Canadian plywood trading got off to a sluggish start following Canada’s long holiday weekend, and picked up little throughout the week.
| This Week | Last Week | Year Ago | |
|---|---|---|---|
| ORIENTED STRAND BOARD COMPOSITE | $1,791 | $1,755 | $436 |
| 3/8″ 4×8 OSB | $1,900 | $1,875 | $360 |
| 23/32″ 4×8 OSB T&G | $2,410 | $2,385 | $560 |
| 3/8″ 4×8 Spruce Plywood | $1,519 | $1,519 | $454 |
2020-2021 ORIENTED STRAND BOARD COMPOSITE PRICE
*All Pricing is in CAD