Random Lengths North American structural panel composite climbs $1 to US$316/msf; Western plywood producers resist counters, triggering round of purchasing, double-digit gains

Wendy Lisney

LOS ANGELES , February 11, 2012 (Industry Intelligence) – The Random Lengths structural panel composite edged US$1 (0.32%) higher in the week ending Feb. 10 from US$315 per thousand sq. ft. (msf) on Feb 3 to $316/msf – up $21 (7.12%) from the price reported at this time last year of $295/msf.

OSB sales picked up towards the end of the week after producers conceded to modest counter offers from Wednesday, reported Random Lengths. This encouraged buyers to cover their immediate needs, and by Friday morning, mills’ order files were booked past the week of Feb. 20.

The price of the benchmark grade, OSB North Central 7/16 in. fell $5 (2.59%) to $188/msf from $193/msf in the week before. The price reported on Friday was $7 (3.59%) lower than the price reported a year ago ($195/msf). In the Southwest, the reported price dipped to $200/msf.

The OSB composite dropped $4 (1.77%) to $222/msf from $236 in the week before, and was down $1 (0.45%) from the price reported at this time last year ($223/msf).

Southern Pine plywood sales picked up from midweek, and customers booked enough volume for producers to stabilize or increase rated sheathing prices. By Friday, higher prices were driving buyers away, and competition between regions put pressure on Eastside mills to agree to larger discounts.

The reported price of Southern plywood Westside CDX 15/32 in. 3-ply climbed $3 (0.93%) to $325/msf - $20 (6.56%) higher than the price reported at this time last year of $305/msf.

Southern plywood Westside CDX 15/32 in. 4-ply finished the week $7 (2.13%) higher at $335, and was $25 (8.06%) higher than the price reported a year ago of $310/msf.

Southern plywood eastside CDX 15/32 in. 3-ply held at $365/msf for a second straight week, and was $50 (15.87%) higher than the price reported at this time last year ($315/msf).

The Southern plywood composite dropped $1 (0.21%) to $485/msf - up $71 (17.15%) from the price a year ago ($414/msf).

In Western plywood markets, mills continued to resist counters, leading some buyers with dwindling inventories to pay producers’ asking prices. This set off a round of purchasing, reported Random Lengths. Offers as low as $315/msf were reported before sales picked up, and quotes met resistance once they moved into the $350s.

The reported price of Western Plywood Coast CDX 1/2 in. 4-ply sheathing rose $10 (2.99%) to $345/msf, and was $30 (9.52%) higher than the price reported at this time last year ($315/msf).

The Western fir plywood composite rose $7 (1.40%) to $506/msf from $499/msf in the week before, and was $46 (10.00%) higher than the price reported a year ago ($460/msf).

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