OSB pricing has ‘softened’ over the last month and returned to April’s levels. I certainly wouldn’t expect further downward movement from this point on. There is still ample production so pricing should not change dramatically. If pricing does change it would be attributed to loss of production or natural disaster.
2×4 and 2×6 dimensional pricing slid a little over the last couple of weeks, but the window of opportunity to capitalize on the limited amount of deals did not last long. Lower than anticipated demand related to weather and labor constraints left for some excess production. The deals only lasted long enough for dealers to clean up any production they had left over from the first half of the year. Typically, we see prices drop a little more than they did this time of year. Regardless, we would expect prices to move back down in the fall.
Studs have been problematic the first two quarters. Mills were getting such a good return on 104 5/8″ trims that they cut production on the 92 5/8″ trim. 92 5/8″ stud pricing is now coming in line with lineal pricing but 104 5/8″ studs still appear to be trading at the premium where they should. This is due to the fact that 8′ logs are harder to harvest than 9′ logs. Couple bullish pricing with an intentionally low production and a bad batch of logs, and I think it is easy to see why studs have been problematic.
Wide dimensional also fell consistent with what the narrows did but at least the product availability issues are going away. Unfortunately, rail issues are still with us but they are getting better and at least the mills have product to ship which is unlike studs.
Finally, Southern Yellow Pine has been mixed. 2×4 is up, 2×6 is down, and wider dimensional held its own. I would expect a correction between 2×4 and 2×6 but sometimes these things take a couple months. Southern Yellow pine has generally been a better value option to the western species due to differences in freight costs.
What does this mean for you? Overall, we have products available. The mills and species may be a little different but the strength and quality have not been diminished. Look for pricing to remain relatively stable and at good value.