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Demand expected to push up prices in 2010
Published:  18 March, 2009

Structural panel prices will climb quickly when the expected market rebound occurs in 2010, as a greatly reduced capacity base strives to meet increasing demand, according to Greg Lewis, director of wood products for San Francisco-based industry information provider RISI.
In an article in Building-Products.com, Lewis said final figures for 2008 were expected to show North American structural panel demand at 34 billion ft2, 14% less than in 2007.
Demand is predicted at 31.9 bsf in 2009, but analysts expect housing to bottom out in the first quarter at a seasonally adjusted annual rate (SAAR) of around 710,000-715,000 units. For the year, starts are expected to exceed 1 million units (SAAR), and reach 1.4 million units in 2010, said Mr Lewis.
This will help lift North American wood panel demand, particularly OSB, in late 2009 and in 2010, when a 25% increase to 40 billion ft2 is predicted.

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