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.