OSB price down to $265/1,000 sq. ft. OSB prices are down from an average of $417 in the first quarter to $265 as of today. This is the price for 1,000 square feet in the North-East.
At current levels, the prices are approaching the break-even point even for efficient producers (Norbord among them). Any further drops will mean losses instead of profits. And this while US housing starts are over 1 MM/year.
Today NBD stock lost again on a very large volume of 1.2 MM shares. Someone is bailing out while they still can.
See the graph below, if you own NBD and you are a masochist.
Random Lengths Panel Market Report
Structural panel prices continued to plummet. The Random Lengths Structural Composite Price fell for a 10th consecutive week, the longest such stretch since fall 2008. Prices of OSB fell under heavy downward pressure, extending the trend that has been nearly uninterrupted for the entire second quarter. Downward pressure was unabated in Southern Pine plywood markets. The overall tone remained bearish. Western Fir plywood sales were spotty for most producers. Prices declined modestly on low sales volumes.
| (f.o.b. mill prices) | This Week
Jun 21 | Last Week
Jun 14 | Year Ago
2012 |
| Random Lengths Structural Panel Composite Price* | $380 | $399 | $374 |
| Southern (west-east) 15/32-inch 3-ply rated sheathing plywood | 355-375 | 375-395 | 385-398 |
| Southern (west-east) 15/32-inch 4-ply rated sheathing plywood | 355-375 | 375-395 | 390-405 |
| Western 1/2-inch 4-ply rated sheathing plywood | 350 | 360 | 417 |
| North Central 7/16-inch Oriented Strand Board | 265 | 295 | 255 |
| *Weighted average of 11 key items |
