With prices already steady to rising in the plywood market, a late Thursday afternoon fire at the Swanson plywood mill in Springfield, Oregon, sent buyers into a fury to grab existing stock. Thankfully news reports say that no one was injured in the fire, but the mill was a total loss.
Strong plywood prices climbed rapidly as news of this drain on fir plywood supplies spread throughout the industry. This activity spread from the fir market to the southern yellow pine plywood trading within hours and the tightening from the existing shutdown of Georgia Pacific’s eastside pine mill only worsened the situation. Buyers who were previously sitting back filling only empty stock were quickly grabbing inventory before prices climbed. By Friday afternoon the frenzy was pushing both pine and fir markets rapidly upward.
Traders are anticipating some carryover of this demand into the OSB market, which has been weak recently. As we reach mid-week there should be a clearer picture of the affect this disaster will have on the market into the upcoming weeks.
For more information on the event you can see full news coverage at Swanson Fire.