Louisiana-Pacific: OSB vs Siding Manufacturing

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But they restarted that, correct? They restarted, what was it, Swan Valley or Dawson Creek, one of the big ones.

Over the last three years, there's been a lot of volume starting to come back in. And then you have these new announcements that are going to start coming in now. I think [Enstora] is going to hold off. I think J.M. Huber will go forward because J.M. Huber has reached the point where they can't grow their ZIP market and they can't grow their AdvanTech market because they're out of product. So they need that mill to advance the growth of their product line.

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There are some specialty products, I think, that LP has that do list pricing. But from what I understand, most of it is still pegged to random lengths. At the end of the day, it's random lengths plus some dollar spread on top. So it doesn't seem like that would neutralize the cyclicality in OSB pricing. Specialty OSB pricing, but is maybe demand for these specialty products. Specialty OSB, is that more stable or predictable compared to commodity?

Yes, because you think about where they're putting them and why they're putting them there. So if you think about it, everybody wants green. So there's TechShield. You think about vapor barriers. The contractors, your good contractors and your big builders, they're looking at it saying, "Okay, if I put up a vapor barrier that's pressed into the board, then it's there, and all I have to do is tape the seams, and I'm through with it." Whereas, if I'm the contractor, I go out and I wrap it with this house wrapping, and then the wind blows, and it blows it off. What do I have to do the next day? I have to get up there and nail it back up. So there's labor. There's time.

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