NOVEMBER 2021 BUILDING MATERIAL MARKET REFLECTION
November proved to be a volatile month in the lumber market. The first two weeks of the month saw the market on a steady decline, but the last two weeks saw the market make a 180-degree turn, quickly erasing any losses and finishing up as November comes to a close. Many attribute a strong U.S. housing report, and a potential supply chain disruption due to heavy rain in British Columbia, combined those with incoming duties of up to 20% on Canadian lumber products shipping to the U.S.,
The OSB Market was perplexing for buyers. R/L Print reported prices declining but product was difficult to source. Sales reports out of distribution was at a $100-$150/M premium to R/L Print. As the month closes there is a sense that OSB could be positioned for a bit of a run.
Plywood finally found its footing after over 2 months of no movement. Lead by strong activity in Eastern Canada, mills were able push prices upward and solidify order files in many cases into the New Year.
Truss production looks to remain strong to finish out 2021. Builders are pushing to get as much product to sites as quickly as possible, as they try to keep pace with strong demand. This, combined with continued supply chain issues and allocations, is creating challenges for producers.
In building materials and finishing, a few products continue to be an issue as we head into December. As reported MDF suppliers are cautiously optimistic; raw material supply is getting better. Exterior drywall will continue to be an issue as we head into 2022, as will LP Smart Panel/Trim. Distributors are on allocation with any new orders not arriving until sometime in the new year. The past two weeks or so has seen adhesives becoming a supply issue as well. Expect price increases to continue as raw material and transportation costs continue to rise.