By Madison's Lumber Reporter
When times are uncertain there is one sure thing
to provide insight into particulars; panel
prices. Whether it be storms, fires, or
otherwise, among the most-needed items in
society is plywood. Given the current situation
in many regions of the US, it is assured that
demand for plywood and other panel sheathing is
going to increase in the short-term. There are
much fewer producers of this essential building
material than there are regular sawmills of
North American construction framing dimension
softwood lumber. As well, input costs for wood
panel products are much higher.
A spike in demand, whether for immediate repair needs or longer-term rebuilding, for Plywood and Oriented Strand Board (OSB) always causes a surge in price. If it is a brief, sudden circumstance, plywood prices will pop for three weeks or so then settle back down. If for a more long-term impact (for example: rebuilding an entire town after forest fire) wood panel products will sell at higher prices for a longer time.
The prices of Canadian OSB 7/16” — the benchmark item among North American wood panel commodities — where already greatly improved over one year; in large part due to mergers, consolidations, and other attrition among existing panel production facilities in the past couple of years.
As for dimension lumber, 2×4 studs and standard grade (#2&Btr) dimension lumber items were again in short supply compared to demand. Sawmills across the US and Canada had trouble processing enough volume to keep pace with ravenous customers; as production was affected by reduced staff, rotating shifts, and other conundrums caused by augmented return-to-work restrictions.
For the week ending May 29, 2020, the price of Western-Spruce-Pine-Fir 2×4 continued its upward trajectory, improving another +$6, or +two per cent, to US378 mfbm compared to the previous week when it was US$372. Prices for this benchmark construction framing dimension softwood lumber item were up +$42, or +13 per cent from the lows of one month ago. Compared to the same week in 2019 when it was US$306, this price is up +$72, or +24 per cent.
When times are uncertain there is one sure thing
to provide insight into particulars; panel
prices. Whether it be storms, fires, or
otherwise, among the most-needed items in
society is plywood. Given the current situation
in many regions of the US, it is assured that
demand for plywood and other panel sheathing is
going to increase in the short-term. There are
much fewer producers of this essential building
material than there are regular sawmills of
North American construction framing dimension
softwood lumber. As well, input costs for wood
panel products are much higher.A spike in demand, whether for immediate repair needs or longer-term rebuilding, for Plywood and Oriented Strand Board (OSB) always causes a surge in price. If it is a brief, sudden circumstance, plywood prices will pop for three weeks or so then settle back down. If for a more long-term impact (for example: rebuilding an entire town after forest fire) wood panel products will sell at higher prices for a longer time.
The prices of Canadian OSB 7/16” — the benchmark item among North American wood panel commodities — where already greatly improved over one year; in large part due to mergers, consolidations, and other attrition among existing panel production facilities in the past couple of years.
As for dimension lumber, 2×4 studs and standard grade (#2&Btr) dimension lumber items were again in short supply compared to demand. Sawmills across the US and Canada had trouble processing enough volume to keep pace with ravenous customers; as production was affected by reduced staff, rotating shifts, and other conundrums caused by augmented return-to-work restrictions.
For the week ending May 29, 2020, the price of Western-Spruce-Pine-Fir 2×4 continued its upward trajectory, improving another +$6, or +two per cent, to US378 mfbm compared to the previous week when it was US$372. Prices for this benchmark construction framing dimension softwood lumber item were up +$42, or +13 per cent from the lows of one month ago. Compared to the same week in 2019 when it was US$306, this price is up +$72, or +24 per cent.
