Why is osb price so high

The forecast rise in interest prices never materialized and the construction industry continued its boom through the second and third quarters of For the first time in years we had buyers wanting more than the manufacturers could produce. Given the chance to make up for lost profits, oligopoly producers are reluctant to drop prices as quickly as they have run up.

However, its unlikely that high prices will stay with us for too much longer. Three things are working against that; new capacity, imports, and product substitution. When a single new large OSB plant starts up, it can have a near instantaneous impact on overall industry capacity.

Several new plants are expected to come on line in the next two years. Each of these forces helps keep the producers honest. Also, natural disasters, like hurricanes and fires, have increased the demand for OSB. As OSB prices continue to rise because of reduced production and increased demand , contractors and building owners look for ways to offset the high OSB prices.

The manufacturing of OSB involves pressing wood bits together and bonding with adhesive resin and glue. Sheathing holds the studs together that give the building structural integrity wall bracing , provides a surface for fastening siding materials, and can also provide thermal properties critical to HVAC air retention.

By the s, OSB was a leading commercial structural sheathing material, mainly due to its lower price over other sheathing materials. Another advantage of OSB is its size. Oriented strand boards are large, tall panels, which makes for fewer horizontal seams than plywood panels.

High moisture can also cause mold, which is unhealthy for the occupants of the building. Formaldehyde can cause breathing problems, irritation of the eyes, nose, throat, or skin and even cancer. August 27, at pm. Leave a Reply Cancel reply Your email address will not be published. The Latest Framing Lumber Prices. About NAHBNow is the official blog of the National Association of Home Builders and your one-stop source for home building industry news, product information and educational resources.

All rights reserved. Theme by Solostream. Loading Comments Over the past decade, however, our population growth was just 0. In the era, the number of households grew by 1. In the last decade, growth averaged only 1.

And population growth has slowed more in recent years because of very low immigration. With lower growth of population and households, the historical 1. Lumber and plywood prices typically rise in the spring and drop by the end of fall, by about five percent. This year look for not a decline but a leveling off. Prices will remain high for another two or three years, then drop back to more normal levels.

The key to the pace of decline will be mortgage rates. In the meantime, homebuilders will pass the costs along to their buyers. The do-it-yourselfers will have a good excuse to postpone new projects. What better time to take a vacation? This is a BETA experience. You may opt-out by clicking here. More From Forbes. Nov 13, , pm EST.

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