MARCH 2024 BUILDING MATERIAL MARKET REFLECTION

Building Material Market Overview

March started with a robust pace that carried through from February, but pricing and demand tailed off as the month progressed. Mills are remaining firm on pricing, positioning themselves for an expected buy in as we move deeper into spring and better weather. Buyers remained on the sidelines digesting February purchases, hoping for the market to soften with slower than expected takeaway in March.

New Residential Construction Press Release (census.gov)

Canada Housing Starts (tradingeconomics.com)

As mentioned, we saw a follow through of February’s price increases continue into the beginning of March. As demand slowed in March so did prices. March pricing still finished up overall.

OSB prices surged through March as mills pushed order files into late May in some cases. Cash wood is at a $50/M premium to contracts.

Plywood demand remains strong, and pricing remains firm, with mill order files out until end of April delivery. There are reports that Select grades are in tight supply at the mills.

EWP supply remains in good shape in all products. Order files continue to be strong moving forward.

We continue to watch the developments in the Suez Canal and the Port of Baltimore. At this point supply on our product lines have not been impacted. There have been reports of ocean freight rates increasing so that is something to keep an eye on. Rockwool continues to be a product that is difficult to source due to production issues by the manufacturer.

Looking Through the Crystal Ball

As buyers digest recent purchases mills are holding firm on prices waiting for the next buying cycle. Over the past few months that buying cycle was happening approximately every 3 weeks, the first week of April is that 3-week mark so it could give us a possible indication on which direction the market will move. Another thing to keep an eye on is the spread between SPF and SYP. Southern Yellow Pine is currently trading at a significant discount to Western Spruce-Pine-Fir. Expect this price gap to come back in line at some point with either SYP moving up, or SPF moving down, or a combination of the two.

FRAMING LUMBER

Increased market activity the last week of the month allowed mills to increase their order files into late mid to late March. There are many factors in place and if they line up, we could equal a substantial run in the lumber market.

OSB

Found a bottom in February, and like lumber saw some upward momentum to finish off the month. Supply remains tight and mills are reporting order files into mid to late April, so we can expect pricing to remain firm heading into March.

PLYWOOD

Pricing continues to surge upward with mills extending order files into late March, early April, creating a solid plywood market heading into the spring.

MARCH 28, 2024 LUMBER MARKET REPORT HIGHLIGHTS:

• Framing lumber markets experienced a slowdown in sales due to a transitional phase and the holiday.
• Western S-P-F trading started to decrease in which spring break, month-end, and weather played a part.
• Lumber futures saw the March contract lower. Cash market was mainly flat and premium narrowed.
• Stud prices inched moderately higher while demand started to tone down.

MARCH 28, 2024 PANEL MARKET REPORT HIGHLIGHTS:

• OSB prices continued to hike up even as buyer concern to obtain stock was eased.
• Traders were not as active with the approaching holiday.
• Western plywood saw decreased yet steady sales during the week. Most producers increased quotes.
• Canadian plywood had a quiet sales week. Most buyers decided to hold off until they could forecast
  demand more accurately.

*All Pricing is in CAD