FEATURE Story By David Koenig
DESPITE CONTINUING demand, OSB prices began dropping fast during the summer after 18 months of record increases.
Uncertainty runs high in volatile OSB market fter reaching historic highs in June, the price of OSB began to drop through the summer, at one point plunging several hundred dollars in a single week. Through the end of the summer the fast-falling prices have frozen many buyers, afraid the drop will continue. Yet
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2021
OSB Top 10
1 West Fraser
Headquarters: Vancouver, B.C. OSB Mills (12): Huguley, Al.; Cordele, Ga.; Guntown, Ms.; Bemidji, Mn.; Joanna, S.C.; Jefferson and Nacogdoches, Tx.; Grand Prairie and High Level, Alb.; Barwick, Ont.; Chambord and La Sarre, P.Q. [Plus Scotland, Belgium] In February, West Fraser—one of the world’s biggest lumber manufacturers—also became the world’s largest producer of OSB overnight, with the completion of its purchase of Norbord. West Fraser operates 12 OSB mills in North America (seven in the U.S., five in Canada), with an industry-leading combined annual capacity of more than 8 billion sq. ft. It also has an OSB mill in Scotland and one in Belgium. All have been running close to capacity. And in May it restarted its mill in Chambord, P.Q., which had been dormant since 2008.
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with customers remaining active, purchasers can’t wait too long. “Business is still crazy, although buyers are holding off when they can to let prices settle in,” explained Langboard’s Chuck Rigoni. “Most can’t hold off much though, as their customers are so busy. We believe there is still very
2 Louisiana-Pacific
Headquarters: Nashville, Tn. OSB Mills (9): Clarke County and Hanceville, Al.; Houlton, Me.; Sagola, Mi.; Watkins, Mn.; Roxboro, N.C.; Carthge and Jasper, Tx.; Maniwaki, P.Q. [Plus Peace Valley, B.C. (idled); Brazil, Chile] Capitalizing on the high prices for OSB, LP has been generating considerably more revenue on slightly less production. In 2020, its nine North American OSB mills produced just over 3.5 billion sq. ft., a 5% drop from the previous year, but increased net sales by 57%. Similarly first quarter 2021 sales jumped 145% on 7% lower volume. LP is currently upgrading its Peace Valley OSB mill in Fort St. John, B.C., with plans to restart the facility later this year after a two-year layoff. By the time it ramps up by full production in mid-2022, the facility will add around 750 million sq. ft. of product. In the meantime, current overall capacity is 4.84 billion sq. ft. The company has also been increasing its percentage of value-added materials OSB. In the first quarter, 47% of its OSB output was LP Structural Solutions (radiant barrier, air/water barrier, premium subflooring, fire-rated sheathing), up from 43%—continuing a recent trend. Building-Products.com
