Recently in the western plywood commodity market, we’ve observed a steady and gradual upward trend in prices. Sales have been decent and steady, with daily inquiries showing consistent interest. However, we also note mini-surges in sales, reflecting the cautious and intermittent buying pace seen in the industry this year.
The market for 7/16 OSB remains tight, as mills limit available open market wood. Consequently, buyers are left to fill their needs with contract wood, often at steep premiums compared to standard pricing. In the western U.S., 7/16 OSB is regularly selling above 15/32 CD 4 ply, creating a notable shift towards plywood as a viable alternative due to availability issues.
The structural plywood markets in the south and west have seen a certain level of support due to this phenomenon. However, overall plywood demand has been steady in its own right. Buyers continue to approach purchases with caution, opting to procure no more than their immediate needs. This approach leads to paying prevailing rates on panels week to week, maintaining a finely balanced market between supply and demand.
Pine plywood holds its ground in the market, presenting a solid performance; but not extraordinary. Meanwhile, Canadian plywood also stands firm in terms of pricing and demand.
With hundreds of wildfires raging across British Columbia, there is a watchful eye on the potential impact on lumber and panel production in the affected areas. The wildfires have already consumed a record amount of acreage, and we’re not even at the midpoint of summer. As always, unforeseen challenges can arise in the industry.
Overall, the western plywood commodity market continues its steady course with gradual price increases. As the industry adapts to changing circumstances, we will remain committed to providing reliable and high-quality wood products to meet the diverse needs of our valued customers.
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