Sheathing and flooring products have sold at bigger discount than normal in Eastern Canada compared to mills in the North Central region, while 7/16in products in the south-west have traded at a premium compared to the south-east.
Since early June, 7/16in products from North Central have reached a premium of C$25 over the same thickness in Eastern Canada. This compares to a premium of C$5 in 2005 and C$3 in 2004.
Observers say higher demand in the Midwest has led to higher prices for North Central mills supplying the region.
During July, the 7/16in product in the south-west had a higher average price than in the south-east. This was for the first time since May 2002.
Some traders attributed this turnaround to a depressed housing market in Florida and reduced demand for OSB.
Meanwhile, seven new OSB factories are gearing up to open between now and 2008.
