BOSTON, MA , Oct. 11, 2013 (Viewpoint) -
By David Fortin, Senior Economist, Wood Products
OSB demand is expected to improve cyclically as the recovery in US housing marches forward and will put extreme pressure on the current industry capacity base. Even after accounting for the 4.5 BSF of announced OSB mill restarts through 2014, supply will still lag demand growth and market conditions will tighten as North American OSB demand growth outpaces supply through 2016. Additional supply couldbe added, and in a recently completed study, OSB Capacity Expansion and the Development of US Pellet Exports www.risiinfo.com/risi-store, RISI analyzed where this additional supply might come from and the impacts on wood fiber demand, specifically in the US South given the development of the US pellet export market.
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This article originally appeared on woodbiomass.com: RISI VIEWPOINT: Growing OSB demand will put increasing pressure on the current capacity base…where might additional supply come from?