Due to ongoing soft demand, North American lumber suppliers cut prices further to spur sales.
Customers responded by placing some orders, suggesting they agreed that current price levels were likely the bottom. The collision of ongoing weak demand and arrival of spring building season did little to prompt any real increase in sales volumes.
It seemed like everyone was waiting for someone else to make a move. Continued lack of clarity from political leaders and many unknowns in macroeconomic conditions made for still more feeling of uncertainty.
Sawmills looked forward to an increase in demand now that price levels dropped steadily over the past few weeks.
In the week ending May 9, 2025 the price of Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) was US$430 mfbm, which is down -$30, or -7%, from the previous week when it was $460, said weekly forest products industry price guide newsletter Madison’s Lumber Reporter.
That week’s price is down -$68, or -14%, from one month ago when it was $498.
Lumber industry players groped in the dark for a stable trading landscape amid lackadaisical demand, overabundant supply, and seasonally-subpar construction activity.
To subscribe to Madison’s Lumber Reporter, simply fill out an order form here: https://madisonsreport.com/subscribe/
KEY TAKE-AWAYS:
- Builder sentiment remained negative amid ongoing turbulence in the broader economy.
- Oversupply reduced the pressure on buyers to take long positions and kept the flow of wood to end users inconsistent.
- Wide disparity between suppliers’ quoted prices persisted, contributing to buyer apathy.
- In the highly-populated areas of US Northeast construction activity was a step behind typical spring levels.
- Vendors in the tri-state area had begun selling product at below replacement cost.
- In the US south, freight was an ongoing sore point, with players advising to book early and budget accordingly.
Madison’s Benchmark Top-Six Softwood Lumber and Panel Prices: Monthly Averages
