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19, Jun 2018 -

U.S. Particle Board Market - Key Findings by IndexBox

U.S. Particle Board Market - Key Findings by IndexBox

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The U.S. particle board market totalled 22.8M cubic metres in 2017, 4.6M cubic metres (or 17%) less than the outset level. The market value declined sharply between 2007 and 2009, continuing a more mild fall over the next three years. According to IndexBox estimates, the trend changed in 2013 when the market rose sharply by 14%; over the subsequent years up to 2016, there was a more moderate growth. Despite a five-year steady growth, the market is still in the recovery phase. In wholesale prices, however, the market  exceeded the pre-recession level, amounting to $6.4B in 2017.

In 2013, structural panels (especially OSB) prices fell significantly as increased demand for structural wood-based panels was offset by an even larger increase in production. Despite an increase in production, non-structural panel prices were stable due to increased demand for furniture and cabinets. In 2016-2017, particle board prices stayed at the same level, while OSB prices grew notably.

Market is projected to reach 26.3M cubic metres

Particle board can be used for various purposes, depending on the surface treatment applied. Particle boards are used in residential, commercial and industrial practice, mainly in furniture production, construction, interior decorating, and packaging, and also as coatings and wall-cladding. In addition, particle board is ideally suited for painting and varnishing, as well as film- and veneer-type coatings, which makes it suitable for use in furniture and other applications.

The outlook for the U.S. particle board sector depends heavily on the country's economy, particularly in terms of the housing market. From 2015-2016, the particle board market increased at a robust pace, due to the propitious housing market. The housing market in the United States is predicted to remain strong. About a +4% increase in the national median existing-home price this year is projected by the National Association of Realtors. Furthermore, an approximately +2% growth in sales is expected this year to amount to 5.46 million and a further +4% growth to 5.68 million in 2018. The growth of house sales was mainly due to increasing employment, as well as low mortgage interest rates.

Driven by the growth of housing market, combined with rising furniture production, the particle board sector as a whole is expected to have an upward consumption trend over the next eight years.
Market performance is forecast to grow with an anticipated CAGR of +1.8% from 2017 to 2025, which is projected to lead the market volume to 26.3M cubic metres by the end of 2025.

Production experienced growth over the last five years

U.S. particle board manufacturing stood at 16.8M cubic metres in 2017. It was equal to $4.8B. Production volume demonstrated a downward trend from 2007, then it turned upward in 2013 with further growth through 2017. In value terms, the trend was generally the same, but less stable due to price changes.

The production structure is shifting towards a larger OSB production 

The particle board category is an aggregate category. It includes oriented strandboard (OSB), waferboard and flaxboard. In this report, the total volume of production is divided into two categories: particle board and oriented strandboard (OSB).

OSB accounted for the highest share (75% in 2017) of U.S particle board manufacturing, followed by particle board (25%). The share of OSB strengthened by +5 percentage points, while particle board saw its share reduced. OSB is widely used in the construction of houses, especially single-family units, which creates a greater demand for this type of products against the background of a steady growth in housing construction.

Approx. 25% of the market was provided by imports from Canada

The share of imports in the U.S. particle board consumption was at 28% in 2017. Due to high trade intensity, imports should be regarded as strong factors influencing U.S. market dynamics in the medium term. Moreover, the U.S. main trading partner is Canada, whose products covered a quarter of the particle board market in the U.S. Canada supplied mainly OSB products.

Mexico and Canada remains key markets for particle board exports from the U.S.

In 2017, U.S. particle board exports expanded to 334K cubic metres. Over the period under review the export volume indicated mixed trend patterns: a solid growth from 2010 to 2014 turned into a pronounced decline through next three years.

In 2017, Mexico (51%) and Canada (41%) were the main destinations for particle board exports from the U.S., together comprising 92% of the total number. From 2007 to 2017, average annual growth rates of particle board exports to Mexico stood at +4.4%. By contrast, Canada’s share decreased by -2.6% per year, over the period under review.

The share of Mexico in terms of the total exports increased significantly, from 25% in 2007 to 51% in 2017; at the same time, the share of Canada remained relatively stable throughout the analysed period.

Canada emerged as the major supplier of particle board to the U.S.

From 2007 to 2017, U.S. particle board exports decreased by -0.9% per year, amounting to 6,074K cubic metres in 2017. In value terms, they grew to $1,785M in 2017, which was $228M (or +15%) more than the year before.

In 2017, Canada (5,816K cubic metres) was the main supplier of particle board, making up to 96% of U.S. imports in physical terms. From 2007 to 2017, Canada showed a negative trend pattern, falling by -1.1% per year throughout the analysed period. In addition, the share of Canada decreased from 97.3% in 2007 to 95.8% in 2017. Nevertheless, Canada remains the largest and the main supplier of particle board to the U.S.

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Source: Index Box

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