To put this in perspective OSB prices have risen 80% over the past 8 weeks!  There are many reasons for this run up starting with the recently earth quake in Chile.  North America imports a significant amount of Sanded (AC and finish) plywood form Chile and since the earthquake there little plywood has been able to leave the devastated country.  This has allowed the Domestic plywood mills to change their production to higher valued AC and finish plywood panel production while making the Commodity CDX panels in short supply.  Other factors that are contributing to this up swing in prices are: Prices before the run up were 30% or more below historical pricing levels, over the past 3 years Millions of Board feet of production have been taken off the market as the mills are downsizing to keep supply in line with the NEW demand levels,  Dealers across the country have been keeping inventory levels at the lowest levels possible to meet the small demand they have been having, and a better then expected spring business demand.

There is almost universal consensus among industry experts that these prices will not hold and we could see prices drop as quickly as they ran up.  When or if this might happen is still a mystery.  Plywood mills have 5-6 week order files at this point and there have been few if any announcements of mills reopening and putting additional capacity online (still a 6 month prospect).  Most experts believe that by Mid July prices will level off and then begin to fall, but what if housing starts continue to out preform everyone’s expectations?

Plywood has the biggest increase in pricing since the beginning of the year but we now are seeing “other” material go up as the raw fiber is getting more expensive.  Engineered Lumber products have had 2 price increase announcement of 7% and 10%, the Cedar market is consolidating with NorthWest forest products exiting the premium cedar market.

If you are going to be in the market for wood this summer give us a call.  We strive to keep our customers as informed as we are and can help to protect you from increases AND decreases in the market.