In mid-March the North America construction framing dimension softwood lumber market turned; from the habit of just-in-time buying, to a start of stocking inventory.
As better weather finally began to materialize across the continent, demand for solid wood products increased which sent lumber prices higher. Sentiment still remained very much toward caution, so the actual sales volumes continue to be lower than normal in advance of the spring construction season.
Most of the wisdom regarding US new home building for this year is for ongoing muted activity.
There is a significant amount of lumber manufacturing volume able to come back online at sawmills across Canada and the US, as capacity utilization rates trend
experienced a meaningful drop from previous years. As true home building gets going this year, it will become more clear how much actual demand there will be for wood.
In the week ending March 13, 2026, the price of benchmark softwood lumber item Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) was US$466 mfbm. This was up +$10, or +2%, from the previous week when it was $456, said weekly forest products industry price guide newsletter Madison’s Lumber Reporter.
That week’s price was up +$2, or +0%, from one month ago when it was $465.
Lumber traders had an increase in inquiry, as on-ground prices showing signs of strengthening. Freight rates rose precipitously week after week.
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KEY TAKE-AWAYS:
- The Western-SPF market in the US was driven by short supply.
- Improved business south of the border precipitated a wave of demand for Western-SPF material in Canada.
- Sawmills maintained order files within a two- to three-week range.
- Producers were much more firm on their numbers than in recent weeks.
- Price concessions were increasingly relegated to secondary suppliers.
- In Western Canada trucking capacity again required advance scheduling; exacerbated by driver shortages typical for the season.
- As cheap street prices evaporated in the US southeast, demand naturally flowed to Eastern-SPF.
- Sawmills in the northeast were reluctant to push their order files further out than late-March, as prices there remained soft.
- Sales of Southern Yellow Pine pivoted as customers became more focussed on covering forward inventory positions.
In mid-March the North America construction framing dimension softwood lumber market turned; from the habit of just-in-time buying, to a start of stocking inventory.
