OSB Market Overview
OSB prices are increasing due to high demand and limited supply. OSB thickness for roofs is typically 7/16 or 1/2 inch. OSB can swell if exposed to moisture, telegraphing swelling to flooring or shingles. Plywood may hold screws better but OSB is stronger in shear. Benchmark OSB price recently dropped 23% but remains 325% higher than pre-pandemic, while softwood lumber prices are falling. With booming construction, OSB demand and prices may continue to increase if supply tightens further.
Price Forecast for OSB
What is the price forecast for OSB?
OSB prices are increasing. Prices recently dropped but may rise if demand stays high. OSB for roofs is typically 7/16 or 1/2 inch thick. OSB can swell if wet, telegraphing swelling. Plywood may hold screws better but OSB is stronger. Recently, benchmark OSB price dropped 23% but remains 325% higher than pre-pandemic. With construction booming, demand and prices may continue increasing if supply tightens further.
Lumber Prices in 2023
Will lumber prices go down in 2023?
For many asking, "Will lumber prices go down in 2023?", the answer is simple; prices are expected to be unstable until mid-2023. After that, total supply is expected to catch up with demand, likely resulting in a price dip.
Higher mortgage rates have made purchasing a home more expensive and the housing market has started to dip, with further rate rises expected in 2023 which could seriously dampen the market as mortgage repayments increase.
If a recession hits, land and construction costs could drop – as good a time as any to start building.
Lumber prices plunged 66% last year as the once red-hot housing market faltered. 2023 will likely see continued troubles, according to strategists. The Federal Reserve’s inflation fight fueled a mortgage rate surge, weighing on homebuilding and lumber demand. Rates more than doubled in 2022 before climbing further this week. One strategist sees a "treacherous" first half for lumber, with the Fed expected to raise rates further. Another firm expects a brief 2023 rally before seasonal factors stall it.
So in summary, lumber prices are expected to remain unstable and potentially decline later in 2023 as supply catches up to demand. Key factors driving market volatility include Federal Reserve actions, mortgage rates, homebuilding activity, and seasonal impacts on supply and demand.