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.