OSB producers in the US are seeing the strongest prices in three years.
The reason, according to industry newsletter Random Lengths, is that the balance of supply and demand has been tipped in favour of suppliers.
Other factors contributing to OSB’s strong start to the current year include the fact that prices at the end of 2002 were close to break-even levels.
This led to several plants taking extended downtime in a bid to correct an oversupply problem. Mill inventory levels were low at the beginning of 2003, allowing producers to build order files during unusually strong business in January. Retailers kept stocks lean, enabling producers to keep up pressure on prices.
Production has been kept in check. APA – the Engineered Wood Association, said OSB output in the first quarter was 5.2% less than in the same period in 2002.
And many say OSB is gaining market share against plywood, especially in new residential construction, and is benefiting from a drop in imports due to the weakened dollar against the euro.
