As January marched onward and new business for 2026 got going after the annual Holiday break, lumber prices increased slightly from the usual seasonal lows of year-end.
Current levels were quite close to the beginning of both last year and 2024, providing good stability of price trends. This meant industry folks could better plan for the oncoming spring construction season than has been true for several years. With the great price volatility of 2020 to 2022 now firmly in the past, lumber sellers and buyers had their eyes strictly on the future.
Sawmill production volumes remained lower as operators continue to be cautious about keeping manufacturing in line with demand. At the same time, however, inventories throughout the supply chain are so lean as to be non-existent.
Due to so many unknowns continually cropping up in recent years, lumber producers will not increase production until there is a true rise in actual sales.
Customers, meanwhile, have become accustomed to getting the small amounts of wood they need in relatively short order so have seen no reason to build up inventory. In this context, no one knows what the market situation will be over the next few weeks.
The prevailing sentiment is: to just hope there is no shock or surprise which catches people unprepared.
In the week ending January 23, 2026 the price of Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) was US$460 mfbm, which was up +$10, or +2%, from the previous week when it was $450, said weekly forest products industry price guide newsletter Madison’s Lumber Reporter.
That week’s price was up +$68, or +17%, from one month ago when it was $392.
The supply-driven strengthening trend in SPF and Hem/Fir sales continued apace as this year’s business got going.
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KEY TAKE-AWAYS:
- The supply-driven nature of Western-SPF sales persisted for traders in the United States.
- Sawmills managed their production schedules to avoid potential price corrections.
- Prices climbed further on key Western-SPF items in Canada as tight supply continued to drive upward momentum.
- It was another week of strong demand for purveyors of Eastern-SPF commodities.
- Transportation issues abounded as suppliers fielded daily inquiries for material to be delivered the following week.
- Due to severe weather, lumber sellers were unable to ship quicker than mid-February.
- Anemic demand for Southern Yellow Pine retreated even further as buyers balked at the sharp rise in prices so far this year.
- Movement of product continued to be restricted by uneven truck availability, with the feeling of inconsistent business coming from freight windows opening and closing rather than fluctuations in demand.
Madison’s Benchmark Top-Six Softwood Lumber and Panel Prices: Monthly Averages
