Market Update – June 7, 2021

It is with guarded optimism we can finally report there has been some downward movement in the numbers Random Lengths put out in the past 10 days for most dimensional lumber items. The cash market hasn’t reflected the full amounts of these decreases as both sellers and buyers are trying to figure out where the market is at and where it’s going. Lumber futures have been on a roller coaster over the past few weeks with most of the movement downward and this has put some pressure on the cash market. But most mills claim their order files extend out to late June/early July so there isn’t any immediate pressure for them to lower pricing. Overall strong demand, skinny inventory levels and the perception that many players are under bought and need to step in have most traders doubting that this will be a considerable correction.

Memorial Day sales at the boxes were widely reported as very disappointing due to weather and the notion that sticker shock is finally forcing wallets back into consumers’ pockets. Many of the harder to find items have recently begun to show back up for purchase as most buyers have restricted their purchases to strictly cover immediate needs and putting off as much buying as they can which has pushed down the level of demand. The U.S. chose to double the current tariff on wood coming in from Canada from 9% to 18% but this shouldn’t have much short term effect on prices. Rail cars have become a bit more available but trucking is still a huge issue. An Elkhart based trucking company is offering a $10,000 signing bonus and guaranteeing first year wages of at least $75,000 in an attempt to get drivers. One of our nail suppliers told us that the transportation company holding their container that finally got into port was demanding an additional $15,000 to expedite the delivery. Trucking woes will be with us for some time.  While we’d like to think this is the beginning of a major correction in price we are still in a wait and see position.

Plywood and especially OSB continue to be very scarce with many mills claiming they will not have any open market wood for the remainder of the year. LP has completely stopped making their commodity ¾” underlayment and Huber is limiting their output of Advantech. Alternative products for wall sheathing have been a major disappointment as shipments are not showing up as promised and the product reps who touted them have gone into hiding. OSB print has slowed down a bit but is still moving up. Price remains a secondary concern behind supply.

All other building materials continue to have very long lead times and product restrictions. Price increase announcements continue to roll in as there is nothing to impede manufacturers’ lust for additional profits. The supply and demand imbalance has them clearly in the driver’s seat. Some lines that are especially challenging are kitchen cabinets, interior and exterior doors/components, windows, insulation, sidings, and gypsum. Continue to plan out as far as possible.

MARKET UPDATE – APRIL 29, 2021

MARKET UPDATE – APRIL 14, 2021

The lack of any significant inventory in the distribution pipeline coupled with a stronger-than-ever North American housing market is not allowing for any price corrections across the lumber and plywood markets. The SPF and SYP markets have experienced momentary pauses which create glimpses of hope for price corrections, but there is so little lumber in the reloads, distributors, and lumberyards that the mills don’t have to use discounts to continue to move wood. As a whole we cannot step away from buying long enough to pressure the mills to react. Lead times are extended and the high prices that normally would scare buyers to the sidelines become secondary in importance to the potential of running out of stock.

The OSB and plywood manufacturers have had to deal with very little price pressure. The resin shortages have limited production creating a severe imbalance allowing them to name their own prices. Many producers are limiting the amount of ¾” underlayment you can get on a truck if they allow you any at all. Huber stopped manufacturing their Advantech U/L for five weeks, citing shortages of resin compounded by a derailment of a rail car of resin that was heading to their plant. Availability of all OSB and plywood is extremely limited and even outrageously priced open market wood is bought just as quickly as it shows up, which isn’t often. Demand is going to have to fall a fairly significant amount and for an extended period before the mills to come off pricing to any degree. There has to be a limit as to what all of us will bear in terms of the cost of materials but amazingly we haven’t reached that point yet.

Practically all building materials remain in short supply with lead times out considerably from what we are used to. EWP and insulation continue to be a concern while colors and styles of siding, roofing and composite/PVC decking are hit or miss as far as what is available and in what quantities. Joint compound has become scarce as shortages in latex are having serious impact on both mud and paint. Transportation issues continue to have a huge impact on the movement of product both domestically and internationally.

Market Update – April 7, 2021

Market Update – March 15, 2021

Market Update – March 9, 2021

Limited supplies of raw materials as well as finished goods have allowed mills and manufacturers to continue to drive prices upward in almost all product categories.  Both SPF and SYP keep creeping up in cost as offerings are inconsistent and slow to ship.  Lumber purchased on contracts shows a bit more stability as far as shipping on time and pricing isn’t nearly as high as the open market.  The levels of available OSB continue to be a concern as trucks or cars popping up on the cash market are few and far between and priced outrageously.  EWP manufacturers remain on strict allocation and tracking shipments has become an exercise in futility.  One bit of good news is temperatures have risen to levels allowing the CN Railroad to end their length restrictions on trains.  Severe cold and heavy snow present challenging conditions for safe rail operations, primarily on braking systems.  When trains are limited to fewer cars, it extends shipping times.  There has been little progress made at unclogging the bottlenecks at our sea- ports in receiving and unloading containers.  There has also been more acceptance of European spruce into the U.S. but these ships have contributed to the sea traffic and are slow in getting unloaded.  Importers have had to take steps to warehouse products overseas as some manufacturing is outpacing their ability to ship.  Overall, transportation remains inconsistent and pricey as capacity can’t keep up with demand.

Recent storms in the Gulf Coast region, through Texas and in New Mexico have caused many resin producers to claim Force Majeure; all contracts and pricing are void due to acts of God that are out of anyone’s control.  The lack of ability to produce petroleum and resin based raw materials is having a major impact on many building product categories:  OSB, EWP, roofing vinyl siding, windows and trim, doors, electrical products to name a few.  The sooner more people are vaccinated and return to the workforce, the sooner supply can start catching up to demand.  A regional exterior door supplier just announced a week’s shutdown due to a Covid outbreak but that’s the first one in some time and, fingers crossed, will be the last.  A bright spot among the madness is demand remains strong.  House inventories remain low along with interest rates driving many to still opt for building in spite of the additional costs.  Hopefully this won’t change.

Continue to plan out as far as possible and keep yourself informed.  It’s good to see the days getting longer and warmer for sure.

Special Update – February 24, 2021

Special Update – February 24, 2021

We felt the need to address and clarify the ongoing situation regarding engineered wood in our industry in a special communication. Currently all manufacturers and distributors of I-joists, LVL and rim board are on strict allocation. In an attempt to treat all customers fairly, distributors have committed to supplying dealers at levels equal to 2020 purchase volume. With the housing market showing no signs of slowing, this is in no way going to satisfy everyone and we all are going to struggle with supply for the foreseeable future. Bear in mind, this commitment from distributors is made with the assumption that manufacturers will be able to produce at least as much as they did last year. Big C Lumber will continue to do our best to supply all of our customers at 2020 levels at the very minimum by taking steps to ensure we are managing our inventory as efficiently as possible. To further complicate matters on the supply side, it has been confirmed that Louisiana Pacific, the second largest producer of EWP in North America, is looking at getting out of the EWP business altogether. It has yet to be determined whether this will have any impact on supply in the near-term as a swift exit from the market is not something that is likely happen overnight, but we will keep you in the know as we see how this development will affect the overall situation.

As distressing as the situation is with supply, the news on pricing is equally as concerning. Big C has received communications from various suppliers that they are forced to take their prices up immediately. This is in response to the manufacturers taking this action. Percentage increase announcements have ranged from 10% on the low end all the way up to 60%. We are forced to respond to this situation as well. We are still determining those levels but are doing everything we can to mitigate the effects on your bottom line.

We will continue to keep you in the know as the fog lifts from the 2021 EWP landscape, but meanwhile we urge you to exercise extreme vigilance when it comes to your job costs. Our primary objective is to get everyone through these times as best we can.

Market Update – February 15, 2021

Simpson Strong-Tie Announces Price Increase Across Product Lines

Simpson Strong-Tie has announced a 12% increase on all connectors, steel strong-walls and rod systems. There is also a planned 10% increase on structural screws and 5% on Quikdrive tools and screws. Increases effective for all orders placed on or after April 5, 2021.

WindsorONE Announces 8% Increase

Citing the rising cost of lumber and freight, WindsorONE has announced an 8% hike to become effective on March 15, 2021.

Certainteed Announced Shingle Increase

7% Increase on Certainteed Roofing products will take effect on April 5, 2021.

Owens Corning Announces Increase on Insulation and Underlayment Products.

Prices on Owens Corning woven synthetics and self-adhered products will increase 4-7% on March 15, 2021.

This includes RHINOROOF® & TITANIUM®

Also announced was an increase of 8 to 12% on all fiberglass insulation products and accessories shipping on or after April 19, 2021.

Fiberon Announces First Time User Rebate for 2021

Get up to $500 cash back for trying Fiberon on one of your 2021 projects.

Details and redemption information can be found on the Fiberon website:

Fiberon Rebate Form

Market Update – February 3, 2021

Imbalanced Commodity Markets and Strong Demand Continue to Drive Building Material Prices Higher

This week begins with a continuation of last week’s announcements from steel, aluminum, vinyl, and composite product suppliers. BlueLinx has announced immediate increases across the majority of their aluminum, steel, and vinyl siding products. Quality Edge and Quality Aluminum have also announced 8% and 7-11% increases, respectively, becoming effective on May 1, 2021.

Citing last week’s Ply Gem announcement, BlueLinx has announced new price increases effective immediately.

The following products will increase 7%:

• Vinyl Siding & Accessories
• Vinyl Skirting
• All PVC Products (effective February 12)

The following products will increase 8%

• Injection Molded Shutters
• Aluminum Siding and Accessories
• Steel Siding and Accessories
• Trim Coil

AZEK Building Products

Azek Building Products announces price increases across decking category. Follow the link for the specifics.

Dealer Pricing Update – Azek Building Products

Woolf Distributing Announces Therma Tru Increase

Woolf Distributing announces 8-11% increase in Therma Tru doors.

In response to increases in the cost of slabs, jambs, and hardware, Woolf has also announced a 12% increase in pre-hung steel Therma Tru doors

Read Woolf’s notice here.

Owens Corning Announces Increase on All FOAMULAR insulation products.

Prices on Owens Corning Foamular products will be subject to the following increases as of February 22, 2021:

FOAMULAR XPS: 8%

FanFold Underlayment Board: 8%

HomeSealR, JointSealR, FlashSealR: 5%

Read more here.

Therma Tru Announces New Products for 2021

Therma Tru invites building and design professionals to the 2021 Therma Tru Virtual Experience, allowing them to explore a collection of innovative new products that shape the most current home aesthetic trends.

The 2021 Virtual Experience launches February 2, 2021 and can be accessed here.

Market Update – February 2, 2021

At some point, hopefully in the not-too-distant future, we’ll be able to report that lumber and panel prices have stabilized, building material costs are coming down and there is plenty of product to be had.  This will not be that communication.  Price increases and supply concerns continue to dominate industry news.  Most of the price corrections in lumber that occurred back in November have reversed and we are back to being close to all time highs.  Mill order files are strong and inventory levels at the reloads and distribution centers are thin.  OSB is at all time highs after taking a slight breather in early December.  There is very little OSB to be purchased outside of the wood the mills have sold on contract.  Given the amount of wood out there and the level of demand there is no reason to believe things will get better for months.

Availability of I-joists and LVL have become very concerning over the past few weeks.  All manufacturers are struggling to get resin and other raw materials to produce ample stock.  Lack of resin is affecting a multitude of product lines.  Roofing manufacturers have de-emphasized production of the lesser used colors to maximize their production.  Insulation is on allocation and lead times are extended and the same can be said for vinyl siding.  Interior and exterior doors, windows and cabinets all have big order files and long leads.  The list goes on.

We’ve been sending out price increase announcements as they’ve been arriving in an effort to keep all informed.  Our intent isn’t to barrage you with too many alerts, but we want you to be informed so you don’t get caught upside down in your bidding.

It’s fairly safe to say that a majority of the products going into your jobs right now are a challenge to get and probably as expensive as they’ve ever been.  If you have questions regarding specific products please reach out to me or your rep for additional information.

The objective of every Big C employee is to keep your business running as smoothly as possible.  We appreciate your cooperation and understanding.  Better times are ahead.

Market Update – January 25, 2021

Window Manufacturers Announce Second Round of Price Hikes

Cornerstone Building Brands announced 6-8% price increases on their Simonton, Silver Line, Atrium, and Ply Gem windows. This increase will be effective for all new construction products ordered on or after March 22, 2021 and comes on the heels of the 8-10% increase which became effective on January 4 of this year. Despite Cornerstone pointing to their increased investment in production equipment throughout 2020, lead-times remain unchanged from all-time highs.

• Atrium: 8 to 10 weeks
• Ply Gem: 12 to 14 weeks
• Simonton: 9 to 12 weeks
• Silver Line: 5 to 6 weeks

See below for our most up-to-date lead-time for other window manufacturers.

Ply Gem has also announced a second price increase, this time between 6 and 8%, on all vinyl siding and accessories. This increase is effective immediately (January 25). We anticipate the other vinyl siding manufacturers will follow suit in the coming days so we are planning on providing additional information in next weeks update.

Andersen Windows:

No secondary price increases have been announced on Andersen products as of the date of this post.

• Andersen 100 Series: 5 to 6 weeks
• 200/400 Series: 3 to 5 weeks
• A-Series: 5 to 6 weeks
• E-Series: 4 to 6 weeks

Marvin Windows:

Marvin hasn’t officially announced a price increase, but we are anticipating a 6% increase across all lines to be announced soon and become effective at the end of March.

• Marvin Elevate: 4 to 5 weeks
• Essential: 5 to 6 weeks
• Signature: 10 to 11 weeks

Jeld-Wen Windows:

Jeld-Wen windows saw increases ranging from 6 to 11% starting in December 2020 and no secondary increases have been announced as of the sending of this email. By and large, lead times remain unchanged from August of last year.

• Jeld-Wen Vinyl: 9 to 11 weeks
• Clad: 4 to 6 weeks

Did you know that you can now review your invoices and pay your bill online? Start managing your account online for free today using Web Track! Click the “My Account” at the top of this page to get started today!

Market Update – January 18, 2021

The big story this week is steel. With hot rolled steel prices now exceeding 2008 highs, metal building component manufacturers have announced significant price increases citing an extremely unbalanced supply chain. Manufacturers are indicating that the 4 to 6% price hike slated for the first week of February will likely be the first of several increases and orders are likely to be scrutinized against historic purchases for the foreseeable future.

This week we also have updates from KraftMaid and Merillat Cabinetry both announcing a 2% price increase which will become effective for orders placed on or after February 15th.

Did you know that you can now review your invoices and pay your bill online? Start managing your account online for free today using Web Track! Click the “My Account” at the top of this page to get started today!

Market Update – January 8, 2021

The primary message in our previous update 3 weeks ago was the unfortunate news that the lumber and plywood markets had reversed themselves and were heading back up. We deem it necessary to reiterate that message as all markets are continuing to show considerable strength with little to indicate they will give ground back any time soon. Mills are facing ongoing production issues at a time when the need for wood is very strong as the entire supply chain attempts to prepare for the 2021 season. You have heard it over and over that last year was like nothing our industry has ever experienced and that is absolutely accurate. So far, the beginning of 2021 has been just as bad if not worse than at any time last year. Lead times for many products are already pushing into March and all indications point to another strong year for building. We urge you to stay in close communication with your contacts including anyone you rely on to service your production needs.

Though many of the other building material manufacturers have already implemented or announced price increases, we expect additional increases in the first half of 2021.

Those companies that usually have a once-a-year price adjustment may very well be implementing additional increases. Lead times continue to be a challenge and transportation woes are growing.

2020 is having a hard time letting go.