Strategic responses to the changing business landscape across North America varied widely as lumber industry players still had no clarity on the trade situation.
Uncertainty throughout the solid wood manufacturing and supply chain stymied decision makers trying to make their plans for the upcoming spring construction season.
Builders faced a wide array of unknowns; from housing demand to interest rates to potential tariffs on materials, in what appeared to be more changing updates with each passing day.
Sawmills and wholesalers navigated the seemingly endless assortment of conflicting news releases, each with their own responses. The flow of Canadian lumber to the US border
slowed as sellers were unsure of the reality on-the-ground.
Sentiment plunged to the lowest level in the past several years.
In the week ending March 14, 2025 the price of Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) was US$550 mfbm, which is up +$15, or +3%, 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 +$68, or +14%, from one month ago when it was $483.
Commodity prices to shipping timelines to overall supply were hard to pin down. Many experienced players hadn’t seen lumber market conditions like this in careers spanning multiple decades.
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KEY TAKE-AWAYS:
- The ongoing trade uncertainty caused hoarding among some Western S-P-F customers, while others cancelled orders due to sudden cost increases.
- Secondary suppliers hesitated to bolster their inventories as they usually do around this time of year.
- Prices and ship times varied wildly with each order, were solidified on a case-by-case basis.
- Buyer kept field inventories conspicuously thin, when they are usually adding volume for the spring buy.
- There was subpar availability of most Eastern S-P-F commodities, along with wildly variable commodity pricing.
- Transportation problems were rife across the continent; tightening equipment availability, delayed shipping timelines were reported in all regions.
- Southern Yellow Pine inventory holders with eight-plus weeks of stock on the ground had the bulk of that wood already sold.
Madison’s Benchmark Top-Six Softwood Lumber and Panel Prices: Monthly Averages
