OSB demand is improving and prices are expected to remain on a steadfastly upward course in the near term.
Prices have risen by around 20% since the summer from “an absolute unsustainable low” but remain at “loss-making” levels, not least because of the rising costs of wood, glue and freight, according to a producer spokesperson. Therefore, his own company is aiming to implement increases of up to 10% early in 2010 “or perhaps even before the end of this year”. He added: “The OSB market is off the bottom and we don’t expect it to go back down again.”
Although production capacity is not being fully utilised at present, demand for OSB has been buoyed by the lack of elliottii pine plywood emanating from Brazil and by widespread concern over the quality of other competing products, such as pine ply out of China. However, there has been no evidence of OSB buying activity reaching “panic” proportions, TTJ was informed this week.
