OCTOBER 2024 BUILDING MATERIAL MARKET REFLECTION
Building Material Market Overview
October saw a major shift in the commodity markets which caught many off guard. Lumber, plywood and OSB all found significant traction, seeing prices move up and supply tighten heading into the winter months. With mill order files approaching December delivery and prices still on the rise, it feels like there is no downside risk for the remainder of this year.
New Residential Construction Press Release (census.gov)
Lumber demand surged in October lead by 2×6 and 2×10 taking mill order files into late November. Some items are starting to prove to be difficult to find.
OSB found upward momentum towards the end of the month. Wood outside of contracts is still difficult to source.
Plywood prices pushed higher and higher as the month went on. Mill order files stretching out to late November.
EWP pricing and product availability reman stable heading into November.
Building Materials continuing to see minor price increases on many items, but supply remains stable on most product lines.
Looking Through the Crystal Ball
As mentioned, this strong market run as we head into November has caught most in the industry by surprise. With strong order files, it is safe to assume that we will be working with current market prices or higher for the remainder of the year. Many were expecting to feel the challenges of less wood in the market in the first quarter of 2025, but it feels like the impact of mill closures and curtailments have accelerated that forecast. With Canfor restricted on their U.S. shipments due to substantially higher duty rates it has left an inventory hole that buyers in the U.S. are now trying to fill.
FRAMING LUMBER
| R/L | OCTOBER 31, 2024 | SEPTEMBER 27, 2024 | +/- |
|---|---|---|---|
| 2×4 | $596 | $519 | 15 |
| 2×6 | $761 | $629 | 21 |
| 2×8 | $654 | $586 | 12 |
| 2×10 | $793 | $687 | 15 |
| 2×12 | $960 | $835 | 15 |
| STUDS | OCTOBER 31, 2024 | SEPTEMBER 27, 2024 | +/- |
|---|---|---|---|
| 2×4 – 92 5/8“ | $425 | $391 | 9 |
| 2×4 – 104 5/8“ | $464 | $420 | 10 |
| 2×6 – 92 5/8“ | $452 | $384 | 18 |
| 2×6 5/8“ | $610 | $512 | 19 |
OSB
OSB found upward momentum towards the end of the month. Wood outside of contracts is still difficult to source.
| OSB | OCTOBER 31, 2024 | SEPTEMBER 27, 2024 | +/- |
|---|---|---|---|
| 3/8″ | $520 | $460 | 12 |
| 7/16″ | $520 | $460 | 12 |
| 15/32″ | $550 | $490 | 11 |
| 19/32″ | $690 | $630 | 9 |
| 23/32″ | $810 | $750 | 7 |
PLYWOOD
Plywood prices pushed higher and higher as the month went on. Mill order files stretching out to late November.
| PLYWOOD (STD) | OCTOBER 31, 2024 | SEPTEMBER 27, 2024 | +/- |
|---|---|---|---|
| 9.5 (3/8) | $675 | $586 | 15 |
| 12.5 (1/2) | $900 | $781 | 15 |
| 15.5 (5/8) | $1,125 | $977 | 15 |
| 18.5 (3/4) | $1,350 | $1,172 | 15 |
| 25.5 (1) | $2,037 | $1,770 | 15 |
Framing Lumber Composite Price
NOVEMBER 01, 2024 LUMBER MARKET REPORT HIGHLIGHTS:
- Framing lumber prices are nearing annual highs as they have been rising consistently due to a supply-driven
surge. - Western S-P-F sales fluctuated given the inconsistent supplies at the mill and secondary levels, yet maintained
a steady pace as various items sold well when available. - Lumber Futures trading maintained its steady range, with certain contracts experiencing minor losses and
subsequent gains. - Stud lumber sales showed mixed results, with some types seeing no changes and others gradually increasing.
| This Week | Last Week | Year Ago | |
|---|---|---|---|
| FRAMING LUMBER COMPOSITE PRICE | $578 | $566 | $532 |
| 2×4 #2&BTR KD Western S-P-F | $560 | $544 | $515 |
| 2×6 #2&BTR KD Western S-P-F | $706 | $668 | $421 |
| 2x4x9′ Studs | $498 | $480 | $519 |
| 2x6x9′ Studs | $671 | $641 | $617 |
| 2×10 #2&BTR KD Western S-P-F | $740 | $726 | $436 |
2020-2024 FRAMING LUMBER COMPOSITE PRICE
Structural Panel Composite Price
NOVEMBER 01, 2024 PANEL MARKET REPORT HIGHLIGHTS:
- OSB prices continued to ascend with more noticeable increases particularly in Northern markets.
- Factors such as a mill fire in Eastern Canada and increased buyer urgency played a part in the price
increases as numerous regional mills withdrew from market due to extensive order files. - Western plywood producers maintained a positive outlook following another week of strong sales. Many
mills reportedly sold their production despite a slight drop in sales volume. - Canadian plywood saw mill order files extended to mid-December with buyers obtaining large amounts
at significantly higher prices, causing mills to exit market by week’s end due to limited availability.
| This Week | Last Week | Year Ago | |
|---|---|---|---|
| ORIENTED STRAND COMPOSITE | $516 | $495 | $513 |
| 3/8″ 4×8 OSB | $485 | $470 | $490 |
| 23/32″ 4×8 OSB T&G | $775 | $760 | $740 |
| 3/8″ 4×8 Spruce Plywood | $656 | $614 | $580 |
2020-2024 ORIENTED STRAND BOARD COMPOSITE PRICE
*All Pricing is in CAD