In mid-May, some benchmark construction framing dimension softwood lumber prices bounced slightly as players recognized a bottom had been reached.
The sentiment among players remained cautious due to ongoing uncertainty in the greater economic landscape, however there was a move to replenish severely depleted inventories. The usual seasonal supply-chain issues resurfaced, with operators in the US south especially finding it difficult to source trucks to move their wares.
Indications from the housing market suggested there might be an increase in activity as this building season truly came on. Meanwhile, several wildfires broke out in central Canada and in the northeast US. At time of writing the rebuilding and reconstruction from both
Hurricane Helene and the Los Angeles fires had not even begun in earnest; expectations are that both of these activities will drive up demand for lumber over the next few months.
In the week ending May 16, 2025, the price of benchmark softwood lumber item Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) was US$444 mfbm.
This is up +$14, or +3%, from the previous week when it was $430, said weekly forest products industry price guide newsletter Madison’s Lumber Reporter.
That week’s price is up +$14, or +3%, from one month ago when it was $498.
Players were encouraged by better demand and potentially bottoming prices; perhaps this moribund spring could be salvaged after all.
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KEY TAKE-AWAYS:
- Players thought several factors pointed to a recrudescent market.
- Traders reported a good mixture of rail and truck business, though total sales volumes remained underwhelming for the spring season.
- Demand for Western S-P-F in Canada shifted palpably.
- Buyers were markedly busier; most suppliers reported a tangible boost in inquiries.
- Transactions were signified by a lack of follow-through from buyers, as well as ongoing trend of steep counteroffers.
- Buyers still had plenty of options between sawmills and secondaries to cover their close-term needs in a timely manner.
- Eastern S-P-F commodity prices continued to vary considerably between mills and at the distribution level.
- Recent sharp price drops seemed to be over; many purchasers stepped in to replenish their nearly depleted inventories.
- Heavy spring rain in several key Southern Yellow Pine sourcing regions restricted access to large-diameter logs.
Madison’s Benchmark Top-Six Softwood Lumber and Panel Prices: Monthly Averages
