Woodfiber prices are projected to increase in the southern U.S. as demand for Oriented Strand Board (OSB) and wood heating pellets expands, according to RISI, a market research company serving the forest products industry. The company says OSB producers plan to expand their capacity by 4.5 billion square feet through 2014 to keep up with the recovering housing market.
"Since the collapse in the US housing market, a significant amount of OSB capacity has been idled. The recent recovery in the US housing market is now driving up demand for OSB both cyclically and seasonally. As capacity is added to meet cyclically improving demand, additional woodfiber will be needed. The U.S. pellet export market is developing at the same time that OSB production is ratcheting up and will have implications for woodfiber demand and ultimately prices," David Fortin, senior economist in the wood products division at RISI, said in a statement.
The key OSB producers from the southern U.S. who are covered by this report include: Georgia-Pacific, Tolko, Norbord, Langboard, Louisiana-Pacific, Huber, Weyerhaeuser, Arbec Forest Products, Canfor, Martco, the company says. RISI's full prospectus, titled "OSB Capacity Expansion and the Development of US Pellet Exports-Impacts on Woodfiber Supply," is available for download here.
