OSB North American capacity sitting idleFriday 3 Feb 2012 As reported in previous issues of this newsletter, the glut of OSB capacity remains a key constraint to the fortunes of the North American sheathing market. At least 27 OSB mills have been closed or curtailed since 2006 due to plummeting demand. The split of OSB curtailments/closures remains almost even, with Canada (which initially saw a greater share of the reductions, and earlier than U.S. mills) accounting for 13 mills and 6.6 billion sf of the 12.7 billion sf affected.The higher cost of transport and distance to market, the appreciating Canadian dollar, and other factors are responsible for Canadian OSB mills being knocked out of the race first. However, a string of U.S. OSB mill closures has occurred since early 2009 that has somewhat balanced out the closures and curtailments with Canada. Total U.S. OSB capacity exceeds 32 billion sf, so about 40% of North American OSB capacity is currently not operating. Source: International Wood Markets Group, www.woodmarkets.com  |
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