Even while bilateral trade issues caused confusion and alarm throughout North American industry — forestry players and sawmills included — prices of most softwood lumber commodities continued stable well into January.
Many attitudes reflected caution; with some customers choosing to keep purchases to immediate needs only, while others booked orders for two months in advance to avoid potential new tariff charges. The distraction of political barriers added unnecessary challenges to an already difficult landscape. As well, harsh winter weather across many parts of the continent stymied both construction projects and transportation. Expectations were that weather issues would continue to the end of the month.
Despite all this, many looked forward to what will likely be a good spring building season.
In the week ending January 24, 2025, the price of benchmark softwood lumber item Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) was US$445 mfbm. This is flat from the previous week when it was $445, said weekly forest products industry price guide newsletter Madison’s Lumber Reporter.
That week’s price is down -$13, or -3%, from one month ago when it was $458.
As a wait-and-see approach prevailed among both buyers and sellers, there was little change to S-P-F lumber and stud selling.
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KEY TAKE-AWAYS:
- Attitudes were low-key amid uncertainty regarding trade issues, negative lumber futures, and inclement weather.
- There was a burgeoning switch from SPF to SYP as buyers in the US explored reduced reliance on imports from Canada.
- Buyers and sellers remained uncertain about near-term business decisions regarding purchasing and inventory management.
- Most WSPF consuming regions experienced cold weather, slower transit times, and meagre construction activity.
- Canadian ESPF sawmills stuck to selling only what they could deliver ahead of the new alleged tariff date of February 1st.
- Southern Pine sawmills were chewing through their log decks amid wet weather that made replenishing their fibre stocks challenging.
- Overall supply with Eastern stocking wholesalers in New Jersey remained tight while in relative balance with weak demand, supporting flat price levels from suppliers.
Madison’s Benchmark Top-Six Softwood Lumber and Panel Prices: Monthly Averages
