The Western Plywood commodity market has shown remarkable resilience over the past five weeks – the longest period of sustained growth this year. Lean field inventories and consistent autumn demand have propelled this market on a consistent upward trajectory.
In contrast, plywood commodity markets in the Western, Southern, and Canadian regions stand strong in contrast to the prevailing trends affecting commodity lumber and OSB markets. While dimension lumber markets exhibit softness in various items, OSB markets show varying degrees of softness, with some regions offering deeper discounts than others.
Historically, fall demand for commodity plywood has proven to be robust. Thus, the recent market strength comes as no surprise. However, buyers, mindful of market dynamics, aim to maintain lean inventories to minimize risk – a prudent approach. Nevertheless, the unexpectedly strong demand has caught many buyers off guard.
Buyers remain cautious, adhering to a low-risk strategy that entails paying prevailing rates for fill-in purchases over the past month. This conservative buying behavior is unlikely to change in the near future, ensuring continued market tightness for the foreseeable future.
In this dynamic environment, the engineered wood industry remains resilient, navigating the complexities of market uncertainty with unwavering determination.
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