OSB Mills Boost Production As Countries Emerge From Pandemic Crisis

SEATTLE (Scrap Monster): The OSB mills in the North American and European countries are returning to normal production levels, after being hit badly by the Covid-19 pandemic. Several operations that were idled during the pandemic period are reportedly announcing restarts.

For instance, Norbord Inc. recently announced that it has substantially resumed production across its North American and European mills during the second quarter, mainly due to improved market demand. It must be noted that the company had lowered operating mill capacity by approximately 35% in the month of April this year, in order to match production with reduced demand.

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Louisiana-Pacific had trimmed OSB output by around 100 million square feet in April 2020, which is equivalent to almost one-third of its total capacity. The company had announced production cuts in a phased manner through a series of action including curtailments and reduced schedules. Also, Weyerhaeuser had temporarily lowered its OSB production by 15%.

As per reports, majority of manufacturers have returned to more than 90% capacity utilization rates. The prices too are experiencing week-on-week jumps. The anticipated high OSB demand is expected to keep prices higher in the short term.