MAY 2024 BUILDING MATERIAL MARKET REFLECTION
Building Material Market Overview
The market persisted in its stagnant trend through May. Lumber is looking for any traction it can find as buyers remain content to purchase at an as needed pace. OSB and plywood both saw a little bounce in pricing heading into June, after hitting a bottom.
New Residential Construction Press Release (census.gov)
Canada Housing Starts (tradingeconomics.com)
Lumber showed little movement month over month. It feels like that trend will continue. Mills are holding order files at 1-2 weeks depending on the items.
OSB found a bottom and has started to move up but stalled at the end of May. Still showing down month over month. Material outside of contracts is almost nonexistent in the market. Mill order files are running into the end of June.
Plywood continues to mirror OSB, found a bottom and prices starting to move up, but it too seemed to stall as we move into June.
EWP orders remain strong heading into the spring/summer season and supply remains equally strong.
We continue to watch for any developments on a potential CN/CPKC strike that continues to loom. At this point we have not seen any supply issues on any product lines.
Looking Through the Crystal Ball
As we continue to grind along in this range-bound market the downside risk feels minimal but so does the upside potential. Unless something significant changes on the supply/demand balance it feels like we could be operating in this narrow trading range for the foreseeable future. A major Western Canadian OSB producer announced a mill will be down for 5 weeks in July and August which will have a significant impact during that time as there is very little OSB available on the open market. We continue to monitor the potential CN/CPKC rail strike, as that could have a huge impact on logistics and supply. There is also a possibility of a Canadian Customs and Border Patrol workers strike to keep an eye on moving into June.
FRAMING LUMBER
| R/L | MAY 30, 2024 | APRIL 26, 2024 | +/- |
|---|---|---|---|
| 2×4 | $518 | $523 | -1 |
| 2×6 | $504 | $506 | 0 |
| 2×8 | $532 | $537 | -1 |
| 2×10 | $559 | $572 | -2 |
| 2×12 | $747 | $748 | 0 |
| STUDS | MAY 30, 2024 | APRIL 26, 2024 | +/- |
|---|---|---|---|
| 2×4 – 92 5/8“ | $455 | $454 | 0 |
| 2×4 – 104 5/8“ | $473 | $486 | -3 |
| 2×6 – 92 5/8“ | $356 | $356 | 0 |
| 2×6 5/8“ | $486 | $488 | 0 |
OSB
OSB market saw prices remain flat with some occasional discounts as buyers remain cautious. Mills in Canada are actively seeking business in response to slow sales.
| OSB | MAY 30, 2024 | APRIL 26, 2024 | +/- |
|---|---|---|---|
| 3/8″ | $635 | $725 | -14 |
| 7/16″ | $635 | $725 | -14 |
| 15/32″ | $655 | $745 | -14 |
| 19/32″ | $785 | $860 | -10 |
| 23/32″ | $915 | $995 | -9 |
PLYWOOD
Plywood continues to mirror OSB, found a bottom and prices starting to move up, but it too seemed to stall as we move into June.
| PLYWOOD (STD) | MAY 30, 2024 | APRIL 26, 2024 | +/- |
|---|---|---|---|
| 9.5 (3/8) | $587 | $671 | -13 |
| 12.5 (1/2) | $783 | $895 | -13 |
| 15.5 (5/8) | $978 | $1,118 | -13 |
| 18.5 (3/4) | $1,174 | $1,352 | -13 |
| 25.5 (1) | $1,773 | $2,025 | -12 |
Framing Lumber Composite Price
MAY 30, 2024 LUMBER MARKET REPORT HIGHLIGHTS:
- Framing lumber saw slow lumber trading in May due to economic concerns.
- Western S-P-F market was slow with enough mill sales to prevent excess, but prices dropped where supply
exceeded demand. - Lumber futures traded with limited activity following the holiday, witnessing a significant decline Thursday
and Friday in the July and September contracts due to high-volume selling. - Stud lumber is experiencing low demand which resulted in stable or slightly lower wood prices.
| This Week | Last Week | Year Ago | |
|---|---|---|---|
| FRAMING LUMBER COMPOSITE PRICE | $532 | $523 | $530 |
| 2×4 #2&BTR KD Western S-P-F | $518 | $523 | $471 |
| 2×6 #2&BTR KD Western S-P-F | $504 | $504 | $535 |
| 2x4x9′ Studs | $500 | $504 | $552 |
| 2x6x9′ Studs | $541 | $555 | $749 |
| 2×10 #2&BTR KD Western S-P-F | $559 | $559 | $460 |
2020-2024 FRAMING LUMBER COMPOSITE PRICE
Structural Panel Composite Price
MAY 30, 2024 PANEL MARKET REPORT HIGHLIGHTS:
- OSB market saw prices remain flat with some occasional discounts as buyers remain cautious.
- Mills in Canada are actively seeking business in response to slow sales.
- Western plywood sales were inconsistent. Sheathing prices stayed stable, and the market fell flat due to
thin profit margins and lack of buyer interest. - Canadian plywood sheathing prices stayed steady due to low demand and consistent order files.
| This Week | Last Week | Year Ago | |
|---|---|---|---|
| ORIENTED STRAND COMPOSITE | $650 | $654 | $502 |
| 3/8″ 4×8 OSB | $635 | $635 | $400 |
| 23/32″ 4×8 OSB T&G | $915 | $915 | $685 |
| 3/8″ 4×8 Spruce Plywood | $587 | $587 | $584 |
2020-2024 ORIENTED STRAND BOARD COMPOSITE PRICE
*All Pricing is in CAD