OSB prices at four-year low
By Tom Stundza -- Purchasing, 10/25/2006 2:23:00 PM
Prices of oriented strand board (OSB)—a product similar to plywood— have continued to decline and now are at a 48-month low of $163/1,000 board feet. The 60% freefall in prices from the cyclical peak of $411 in October 2005 reflect a weakened demand for building products in North America, consistent with a fall-off in housing starts. Citing this falling demand, Nashville-based Louisiana-Pacific is curtailing OSB production at five of its North American mills. Also, Canada’s Canfor is reducing OSB output by 44 million square feet this month and next. North American production of structural plywood and oriented strand board (OSB) is now expected to total 41.4 billion square feet next year, or 3.8% less than in its earlier fall forecast, the Engineered Wood Association (formerly the American Plywood Association) has announced. The housing downturn is expected to have a similar dampening effect on demand next year for other structural engineered wood products. Demand in the industry's other domestic markets—remodeling, industrial and nonresidential construction—is still expected to be about the same next year as this, according to the revised outlook.
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