SEPTEMBER 2021 BUILDING MATERIAL MARKET REFLECTION
September saw lumber and sheet goods find its bottom and start to slowly gain some traction, giving some optimism to the market. With strong housing starts reported from both the US and Canada it looks like supply and demand have found a bit of a balance for the time being. A few things to keep an eye on as we move into the fall season are transportation issues, pending government tariffs, future contracts at a large premium to the cash market, along with the unknown impact the fourth COVID wave could have on manufacturing.
Truss continues to benefit from lower lumber costs combined with strong order files, stretching from 4 weeks to 12 weeks depending on the manufacturer. Engineered Wood products are still restrained by allocations on joist, LVL and rimboard with no relief in sight.
MDF products are still a challenge particularly the ½” material. The optimism that we saw towards the end of August had turned back to frustration. Ports are still reporting a significant back log and we are not seeing lead times ease at this point. Exterior drywall continues to be on strict allocations with no end in sight. Shingles and siding are also proving difficult to source currently.
FRAMING LUMBER
The lumber market found its bottom towards the end of August and was able to gain some traction throughout the month of September. Mills have order files into mid-October and have been able to push pricing up at a slow and steady pace. Keep an eye on transportation issues and the large spread between the futures market and cash market as potential drivers as we move into the fall.
| R/L | AUG 27, 2021 | SEP 30, 2021 | +/- |
|---|---|---|---|
| 2×4 | $499 | $678 | 179 |
| 2×6 | $417 | $591 | 174 |
| 2×8 | $417 | $528 | 111 |
| 2×10 | $442 | $623 | 181 |
| 2×12 | $853 | $750 | -103 |
| STUDS | AUG 27, 2021 | SEP 30, 2021 | +/- |
|---|---|---|---|
| 2×4 – 92 5/8“ | $329 | $473 | 144 |
| 2×4 – 104 5/8“ | $480 | $676 | 192 |
| 2×6 – 92 5/8“ | $474 | $521 | 47 |
| 2×6 4/8“ | $569 | $744 | 175 |
OSB
OSB also found its bottom and has slowly and steadily been able to increase prices. Keep an eye on the spread between print and the cash market as the cash market is trading at a $150/M premium currently.
| OSB | AUG 27, 2021 | SEP 30, 2021 | +/- |
|---|---|---|---|
| 3/8″ | $495 | $535 | 40 |
| 7/16″ | $495 | $535 | 40 |
| 15/32″ | $515 | $555 | 40 |
| 19/32″ | $905 | $910 | 5 |
| 23/32″ | $1,055 | $1060 | 5 |
PLYWOOD
The Plywood market seems to have worked through most oft its excess supply and has leveled off, as you can see by pricing for the month. Demand continues to be subdued enough to keep plywood from gaining any ground right now.
| PLYWOOD (STD) | AUG 27, 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 are holding in the 4-to-12-week range depending on the manufacturer. We are seeing more builds getting pushed back due to a shortage in trades people. EWP continues to be a bottleneck for most 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. Shingles are the latest item to become difficult to source. MDF raw material continues to be a challenge, especially in the ½” thickness. Manufacturers that were cautiously optimistic have turned to frustrated as expected product scheduled to arrive in September has not yet arrived.
Framing Lumber Composite Price
SEPTEMBER 30, 2021 LUMBER MARKET REPORT HIGHLIGHTS:
- There have been uneven gains in the prices of framing lumber through the week.
- Despite skepticism across the industry, there are reports of steady to active trading from some traders.
- The latter tended to outweigh the former, however, as the Random Lengths Framing Lumber Composite Price posted gains for the fifth consecutive week.
- Mills boasted order files well into the new month.
- Buyers were given the opportunity to promptly cover their needs with modest discounts and a small amount of developing loads.
| This Week | Last Week | Year Ago | |
|---|---|---|---|
| FRAMING LUMBER COMPOSITE PRICE | $628 | $595 | $1,259 |
| 2×4 #2&BTR KD Western S-P-F | $678 | $632 | $1,247 |
| 2×6 #2&BTR KD Western S-P-F | $591 | $552 | $1,217 |
| 2x4x9′ Studs | $721 | $666 | $1,271 |
| 2x6x9′ Studs | $820 | $743 | $1,211 |
| 2×10 #2&BTR KD Western S-P-F | $750 | $704 | $1,133 |
2020-2021 FRAMING LUMBER COMPOSITE PRICE
Structural Panel Composite Price
SEPTEMBER 30, 2021 PANEL MARKET REPORT HIGHLIGHTS:
- Structural panel prices posted modest gains amid a more measured sales pace.
- Producers were able to make modest price increases stick on sales of sheathing, even with supply and demand being relatively balanced in OSB.
- Digestion among buyers and dwindling open-market offerings curbed Southern Pine plywood sales.
- Underlying demand and constrained supplies sustained double-digit price gains.
- Western Fir plywood mills showed modest upward movement on prices through the week.
- Sheathing prices stayed relatively flat due to the Canadian plywood market having little change from previous weeks
| This Week | Last Week | Year Ago | |
|---|---|---|---|
| ORIENTED STRAND COMPOSITE | $732 | $717 | $975 |
| 3/8″ 4×8 OSB | $555 | $535 | $925 |
| 23/32″ 4×8 OSB T&G | $1,060 | $1,060 | $1,265 |
| 3/8″ 4×8 Spruce Plywood | $539 | $539 | $746 |
2020-2021 ORIENTED STRAND BOARD COMPOSITE PRICE
*All Pricing is in CAD