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Norbord Inc. T.OSB

"Norbord is the largest global producer of oriented strand board, which is used as a structural panel for building applications. The majority of its mills are located throughout the United States, with additional capacity in Northern Europe."


TSX:OSB - Post by User

Comment by dosperroson Apr 04, 2018 3:12pm
75 Views
Post# 27831058

RE:Run Up

RE:Run UpVolumes are strong.

The transportation issues are short term episodic things.

Fundamentally we have a lack of supply to meet the demand for 1.25M US housing starts.  That is the driver of the price hikes.  It's not just the starts, but the Repair and Remodelling market and even exports that are new developments since this level of capacity met 2.0M starts in 2006.

Expect it to go higher once the new capacity adds get absorbed.  This will be more or less it for new capacity given the complexity of permitting. 

We are also going to be squeezed by the pine beetle in BC.  That's a further supply-side issue that will support high prices.
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