Although no further price increases appear likely for the remainder of 2013, the OSB market has remained robust into the fourth quarter and, if this positive mood continues, hikes are considered inevitable for January.
Leading suppliers to the UK confirmed the introduction of 5-7% price increases with effect from the beginning of October in response to what one contact described as "strong demand across the board". However, he said the case for higher prices had been supported by slightly extended lead times; firm to rising plywood prices; and rising glue and freight costs. All of the signs pointed to "strong and constant" demand for OSB next year, especially as the UK construction sector was continuing its recovery "from a relatively low base".
At least one mainland European mill is increasing the frequency of its shipments to the UK owing to the fact that a recent consignment sold out three or four times more quickly than normal – partly as a result, TTJ was told, of particularly acute "availability concerns" heading into the final quarter of 2013. Demand had since settled down but remained healthy, the same contact said. Such "sporadic" injections of material into the UK were often having the effect of "temporarily destabilising" the domestic OSB market, according to another contact.
Latest TTF figures indicate that UK OSB imports fell 6.5% in the first seven months of 2013 to 119,000m³ while exports edged 4.5% lower to 99,000m³.
