SEPTEMBER 2024 BUILDING MATERIAL MARKET REFLECTION

Building Material Market Overview

The commodity markets remained stagnant for September as buyers reverted to buy as needed mode. The fall buy in that many were hoping for to push prices higher has yet to materialize, leaving some to wonder if it was early this year and that is what we saw in August. The ripple effect of the Port Authority strike and Hurricane Helene have yet to show any impact on demand or pricing.

New Residential Construction Press Release (census.gov)

Canada Housing Starts (tradingeconomics.com)

Lumber prices remained relatively flat for September as buyers sat on the sidelines hoping for price concessions and mills fell back on order files which are particularly strong in 2×6 and 2×10.

OSB pricing started to show some cracks as the month came to a close. Grinding down slightly after 10 plus weeks of no movement. Availability outside of established contracts was still very tight, making the OSB market a bit perplexing at the moment.

Plywood had no movement for the month as the supply demand balance remained in check

EWP price concessions that were seen in the eastern market in August, made their way out west as we saw a few manufacturers make some downward adjustments.

Building Materials are starting to see price increases across many items to offset the increase in ocean freight.

Looking Through the Crystal Ball

October historically can be one of the busiest months in the building industry. The Northern regions are trying to get as much done before winter sets in and the Southern regions finally have some cooler temperatures to enable them to get more to the field. Demand is reportedly up in many regions but not enough to move the needle on pricing yet. We also have yet to feel the potential impact of the Port Authority Strikes or Hurricane Helene which could cause some ripple affects heading into October. The higher Canadian mill duty rates will continue to have an impact, the unknown is will it force more mills to curtail or close.

FRAMING LUMBER

OSB

OSB pricing started to show some cracks as the month came to a close. Grinding down slightly after 10 plus weeks of no movement. Availability outside of established contracts was still very tight, making the OSB market a bit perplexing at the moment.

PLYWOOD

Plywood had no movement for the month as the supply demand balance remained in check.

SEPTEMBER 27, 2024 LUMBER MARKET REPORT HIGHLIGHTS:

• The Framing lumber market showed only moderate activity, despite positive economic news. Demand was steady.
• Western S-P-F sales were not particularly strong. The market experienced modest sales and stable prices as early futures buying did not impact the physical market.
• Lumber Futures surged early in the week but saw mixed results by Friday. Cash market remained steady.
• Stud lumber sales reflected the overall quiet framing lumber market, with stable to slightly lower prices.

SEPTEMBER 27, 2024 PANEL MARKET REPORT HIGHLIGHTS:

• The OSB market experienced limited immediate effects after monitoring Hurricane Helene’s potential impact.
• OSB prices were steady to slightly higher and sales were moderate.
• In Western plywood, most mills resisted larger discounts, and Hurricane Helene had minimal impact on the broader market.
• The Canadian plywood saw little change, with mill sales being lower than expected and flat pricing. Most transactions occurred at the distribution level.

*All Pricing is in CAD