Market Report: Plywood Market Trends

The plywood market continues to be uninspiring. Panel prices remain in a very tight range across all panels and thicknesses. We are moving our production volumes weekly with no build-up in inventory, but there is also little to no incentive to run any additional hours.

Veneer has taken on the same tone. LVL markets are underwhelming as markets that producers were preparing for haven’t materialized yet this year. Green veneer markets are just OK, with no overwhelming demand for any particular item. Canadian sellers are trying to unload low grades at discounts, which is very typical of flat markets. The USD/Canadian Dollar exchange rate hovering at 2-year highs doesn’t help domestic producers.

Log prices have moderated slightly, providing a bit of relief to lower product prices. Unfortunately, few believe this will be a long-term trend as the log supply reduction in Oregon remains a significant issue due to government restrictions. Most wood products producers are still only treading water in a competitive market, and the winners are Southern producers in cheaper wood baskets and foreign producers benefiting from the strong dollar environment.

We have dramatically increased our product mix with the installation of new panel layup equipment. We are now producing panels up to 1.5” thick, with veneers in any orientation and any grade throughout the panel. If you have a creative product need, give us a call, and we would be happy to discuss unique panel formulations.

We are also laying up many more LVL formulations from 1.55E to 2.1E in single ply thicknesses up to 1.5” thick or 2” and greater thicknesses in multiple laminations. Within the next couple of months, we intend to offer 10’ and 9’ plywood panels in all typical production grades.

Mass Ply orders are looking solid as we approach summer. A slowdown at the beginning of the year was concerning as clients suggested banks weren’t willing to extend capital, even at higher interest rates. Some of this seems to have sorted itself out, and we are moving forward with previously quoted and contracted projects. May was our best shipping month of the year, and June is currently on track to beat it. These plywood market trends are promising, and we hope this positive trajectory continues as the year progresses.