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Market Commentary | ||||||||||
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OSB
/ Plywood Market
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The OSB/ Plywood market continues to experience overcapacity as a result of significant foreign imports which is reducing margins for domestic producers. The market is producing at a capacity that is at least 400 million tons more than the market can buy. Thus, leading to a surplus for existing market participants. Based, on future projections , the market will continue to grow at about 2 to 3 percent per year in volume. However, on a revenue growth basis, overall industry revenue growth will slow considerably. Even with the boom in U.S. housing starts, the industry is still reeling from excess industry supply. Therefore, until new import restrictions are announced in Washington, this segment of the forestry and paper industry will suffer. | |||||||||||
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