A sign of weakness?
The market weakness continued last week as buyers moved to the sidelines in hopes of lower prices. Western SPF 2x4 fell the most, as mills struggled to move prompt loads. Southern Pine dimension corrected also, as order files dried up and inventories grew at the mill level. The weather took most of the blame, as storms rolled across the country slowing down jobsites.
OSB mills had a difficult time selling last week as buyers were able to find cheaper prices from brokers and secondary’s with contracts to move.
We might have to wait another week to answer the question, is this the start of a big pull back or just a small market correction. The housing market continues to show signs of strength. Housing Starts crossed the million unit mark last month and sales of previously owned homes rose to the highest level since 2009. Overall demand is very strong and looks like it will continue to be in the months ahead.