NOVEMBER 2023 BUILDING MATERIAL MARKET REFLECTION

The month started on a better footing, and we saw prices rally across the board. Product availability tightened up at the mill level putting upward pressure on pricing and leaving many to wonder “Where did all the wood go.” There have been talks of some unpublished curtailments happening at the mills or has the close to one billion board feet we have seen taken off the market with previous curtailments starting to have an impact.

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Upward momentum on all random length lumber pricing, 2×4 (+8%) and 2×6 (+12%) with wides 2×8 (+6%) and 2×10 (+8%). Product has become more difficult to source and lead times have extended into late December or early January. Studs lagged behind 2×4-92 5/8” (-6%) and 2×6- 92 5/8” (-2%) and 2×4-104 5/8 (+7%), 2×6-104 5/8” (-1%), with only 2×4-104 5/8” showing strength in the market.

OSB continued to push higher as supply remains tight, product available outside of contracts is exceedingly difficult to source, creating a two-tiered market with cash trading at a premium to contracts. Finishing (%) for the month. Mills were able to stretch order files into January so expect pricing to hold around current levels.

Plywood started the month strong but as we close out November, buyers are sensing some cracks in demand. Mills have order files into January so this will be a wait and see game on what happens next. plywood finished (%).

Truss orders remained steady with schedules looking solid for the upcoming month and heading into the first quarter of 2024. We are hearing some reports that some EWP manufacturers are experiencing extended lead times.

The supply chain in all other product lines continues to have little issue producing and delivering products, outside of the odd logistical delay.

Looking Through the Crystal Ball

Heading into the holiday season mills have done a great job keeping supply and demand in balance, especially for this time of year. With order files into January, we can expect pricing to remain firm. January Futures are currently trading at a premium to the cash market which means cash needs to go up or futures need to come down heading into the new year. There are rumours of more production curtailments or extended mill shutdowns over the holidays which could shift the supply / demand pendulum.

FRAMING LUMBER

Tight supply and steady demand saw upward price movement. Mills are pushing order files into late December early January so expect prices to hold or continue to increase. Stud pricing lagged behind random length lumber.

OSB

Pricing continues to move upwards as supply continues to be difficult to source. This should continue as mills have order files taking them into January to fall back on.

PLYWOOD

Seems to have topped out on pricing but order files into January should allow pricing to hold going forward.

NOVEMBER 24, 2023 LUMBER MARKET REPORT HIGHLIGHTS:

• Framing lumber prices continued to increase going into the U.S. Thanksgiving holiday.
• Western S-P-F’s steady pace continued through the following week.
• The futures market January contract continued to increase.
• Stud lumber prices increased throughout the week.

NOVEMBER 24, 2023 PANEL MARKET REPORT HIGHLIGHTS:

• The OSB market continued to see a modest upward pressure in price.
• Mills have pushed order files out into late December.
• Western plywood had a short, but steady sales week.
• Canadian plywood sheathing slowed throughout the West.

*All Pricing is in CAD