Focus on OSB: North America | 15


Above: US home building using Huber ZIP sheathing


Market prices, profitability and demand settled in between the historic highs of the two pandemic years and the marginally profitable pre-2020 norm. Structural wood panels are integral to the light wood frame technique typical for Canadian and US housing, and OSB demand closely correlates with homebuilding. OSB usage slowed down in 2023 compared to 2021 and 2022 as higher mortgage interest


rates reduced housing affordability and homebuilding. Economic forecasters expect mortgage


interest rates to continue falling from the Autumn 2023 peak. Lower interest rates may improve demand for new homes enough to keep 2024 Canadian and US starts around 2023 levels. OSB demand and market prices likely would stay about the same. Obstacles expected for 2024 and


later years are the impact of substantial incremental supply from four new mills in Alabama, Maine, Mississippi, and Texas, reopenings of Alberta and Texas mills after severe fires, and the uncertain effect of changing mortgage interest rates on homebuyer purchasing power. The following analyzes the current state and future prospects for the North American OSB industry.


Above: LP Novacore insulated OSB being installed www.wbpionline.com | April/May 2024 | WBPI


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