March waned with the usual seasonal increase in lumber buying and indeed construction activity. As well, transportation issues loomed at the normal time of year.
Lumber industry players reported shortages of trucks and long delays at hubs and at border crossings. Prices of some solid wood commodities strengthened somewhat as cautious players could no longer wait to order the lumber items they needed in the immediate future.
Those who could wait until the beginning to April to find out about tariffs did so. This, even as suppliers warned that — should there be no trade barrier — everyone will order at the same time causing a supply shortage and higher prices. As it is still quite early in the usual spring
building season, many chose to take their chances and wait for proper clarity on the important trade front.
In the week ending March 28, 2025 the price of Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) was US$545 mfbm, which is up +$10, or +2%, from the previous week when it was $535, said weekly forest products industry price guide newsletter Madison’s Lumber Reporter.
That week’s price is up +$63, or +13%, from one month ago when it was $483.
The market entered pause-mode as players waited for the next upcoming tariff deadline of April 2nd. Players across every segment and on both sides of the border were tired of the whiplash and just wanted a final decision so they could move forward with clarity.
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KEY TAKE-AWAYS:
- Western S-P-F retail customers were particularly active since they’d let their inventories run down to bare pavement.
- Transportation continued to be a challenge for players on both sides of the border.
- As the final deadline for tariff announcement approached, the low sales volumes of Canadian Western S-P-F were relegated almost entirely to just-in-time LTL orders through the distribution network.
- Significant lumber price spreads were evident, depending on the source and destination.
- Improving production volumes nudged supply closer in line with sagging demand.
- Secondary suppliers of Eastern S-P-F with stateside inventories were busy as customers in key US construction markets began to load up on their spring needs.
- The pace of inquiry for Southern Yellow Pine appeared to be improving steadily, even as takeaway was slightly slowing.
- Spring-time logistical snarls at the border came into focus; what with backlogged shipments and overworked customs agents.
Madison’s Benchmark Top-Six Softwood Lumber and Panel Prices: Monthly Averages
