RE:North Central 7/16-inch Oriented Strand Board 247$ Aug 23, most likely lower today. Who can post the current mill price? OSB will trade sub $200 soon imho Thanks.
Hello Mtbrider:
OSB does not trade in the futures markets. The current and future prices are therefore unavailable on a daily basis. The best source is the one to which you seem to have access and which gives the current price twice per week (Wednesday and Friday). I am less downbeat than you are regrding OSB prices. I think they have reached a temporary bottom. What concerns me is that these low prices are in effect during the prime building season. One must wonder what will happen in December and January. The current weakness seems to be due to structural rather than seasonal reasons. The sector needs parmanent phasing out of unprofitable capacity and consolidation. Neither seem to be happening at the moment. It would seem to me that the money being spent to distribute unsustainable dividends could be better spent in acquisitions followed by capacity rationalization.
I have a large long position and I keep holding on to it because I have faith in the rationality of businessmen, but, up to now, my faith has proven to be misplaced.
Best
Carlocarli