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.