OCTOBER 2021 BUILDING MATERIAL MARKET REFLECTION
October saw lumber show significant gains, but it finished with a cautious tone amid speculation the market may have been inflated, with mills basis trading the November Futures contract and U.S. buyers purchasing ahead of possible duties being imposed in November.
The OSB market could best be described as slow and steady as it continued to advance upward while Plywood continues to remain unchanged over the past 8 weeks.
Truss production continues to be in the 4-to-12-week range based on order files. EWP suppliers continue to keep tight allocations on producers, limiting the amount of business that can be taken as we move into the 4th quarter.
On the finishing side we are seeing some light at the end of the tunnel as MDF raw material supply seems to be slowly catching up, taking a bit of pressure off finished MDF products. Exterior drywall is still a challenge with no indication of that changing as we head into the winter months. LP Smart panel and trim is the latest product to become an issue sourcing. Mill order files on these items are currently stretching into early 2022.
FRAMING LUMBER
Lumber continued to push upward, posting significant gains over the month. It finished with a cautious tone as many felt it could be inflated with mills selling into a November futures contract that traded at a strong premium to the cash market most of October. There is also some speculation that buyers in the U.S. could be purchasing ahead of potential duties being imposed in November.
| R/L | Oct 29, 2021 | SEP 30, 2021 | +/- |
|---|---|---|---|
| 2×4 | $754 | $678 | 76 |
| 2×6 | $692 | $591 | 101 |
| 2×8 | $593 | $528 | 65 |
| 2×10 | $674 | $623 | 51 |
| 2×12 | $754 | $750 | 4 |
| STUDS | OCT 29, 2021 | SEP 30, 2021 | +/- |
|---|---|---|---|
| 2×4 – 92 5/8“ | $525 | $473 | 52 |
| 2×4 – 104 5/8“ | $692 | $676 | 16 |
| 2×6 – 92 5/8“ | $519 | $521 | -2 |
| 2×6 4/8“ | $803 | $744 | 59 |
OSB
OSB continued to grind upward on 3/8” and 7/16” while 23/32” saw less movement. Supply felt relatively tight allowing the cash market to trade at a $100/M+ premium to R/L print.
| OSB | OCT 29, 2021 | SEP 30, 2021 | +/- |
|---|---|---|---|
| 3/8″ | $595 | $535 | 60 |
| 7/16″ | $595 | $535 | 60 |
| 15/32″ | $615 | $555 | 60 |
| 19/32″ | $910 | $910 | 0 |
| 23/32″ | $1,070 | $1,060 | 10 |
PLYWOOD
Uneventful could best describe the plywood market as it has remained unchanged for 8+ weeks now. Many mills and buyers are still getting out from under the epic market turn a few months ago, so we can expect this trend to continue a bit longer.
| PLYWOOD (STD) | OCT 29, 2021 | SEP 30, 2021 | +/- |
|---|---|---|---|
| 9.5 (3/8) | $539 | $539 | 0 |
| 12.5 (1/2) | $719 | $719 | 0 |
| 15.5 (5/8) | $898 | $898 | 0 |
| 18.5 (3/4) | $1,078 | $1,078 | 0 |
| 25.5 | $1,623 | $1,623 | 0 |
ENGINEERED WOOD PRODUCTS
Truss order files range in the 4-to-12-week time frame depending on the manufacturer. Builds and deliveries continue to get pushed back due to shortages in trades people, and supply chain issues. EWP remains a challenge, as allocations have put a cap on joist and beam availability.
FINISHING PRODUCTS
Exterior drywall continues to be on strict allocations creating challenges for suppliers. LP Smart Trim and Panel have joined the list of tough to source items with extended lead times and tight supply. MDF raw material supply looks to be easing for manufacturers as containers that were held up at sea or ports are starting to arrive.
Framing Lumber Composite Price
OCTOBER 29, 2021 LUMBER MARKET REPORT HIGHLIGHTS:
- Framing lumber prices continued upward momentum into the week with numbers closing out with additional gains.
- Traders became increasingly cautious as price trends flattened or dipped on some key items.
- Random Lengths Framing Lumber Composite Price posted another increase; gains outweighed any losses again this week.
- Trading of #2/#2&Btr was approached with caution.
- MSR and other structural grades continued to have strong demand.
| This Week | Last Week | Year Ago | |
|---|---|---|---|
| FRAMING LUMBER COMPOSITE PRICE | $727 | $710 | $813 |
| 2×4 #2&BTR KD Western S-P-F | $754 | $768 | $706 |
| 2×6 #2&BTR KD Western S-P-F | $692 | $691 | $666 |
| 2x4x9′ Studs | $748 | $777 | $799 |
| 2x6x9′ Studs | $878 | $876 | $1,013 |
| 2×10 #2&BTR KD Western S-P-F | $797 | $796 | $689 |
2020-2021 FRAMING LUMBER COMPOSITE PRICE
Structural Panel Composite Price
OCTOBER 29, 2021 PANEL MARKET REPORT HIGHLIGHTS:
- Price declines outnumbered gains and structural panel sales slowed
- Prices remained the same in most regions as sales of OSB hit a seasonal lull.
- Activity was strongest in Western Canada, but sales also slowed there in late trading.
- Southern Pine plywood markets reported a fading demand for rated sheathing.
- Moderately slower sales pace left little upward momentum in sheathing prices in western Fir plywood.
- With the market’s inability to gather any momentum, Canadian plywood traders were content with flat prices.
| This Week | Last Week | Year Ago | |
|---|---|---|---|
| ORIENTED STRAND COMPOSITE | $736 | $733 | $958 |
| 3/8″ 4×8 OSB | $595 | $590 | $925 |
| 23/32″ 4×8 OSB T&G | $1,070 | $1,070 | $1,265 |
| 3/8″ 4×8 Spruce Plywood | $539 | $539 | $746 |
2020-2021 ORIENTED STRAND BOARD COMPOSITE PRICE
*All Pricing is in CAD