There were no surprises for lumber industry players as December dawned.
Even with so many sawmill curtailments — to ensure supply did not crest demand — lumber prices fell slightly on the usual seasonal slowdown. Across North America the lumber producers had booked production through to the Holiday break. As such, some commercial buyers tested the waters for lumber purchases to start next year.
For the most part, though, folks had downtime and vacations on their minds. A potential two-tier market was developing as secondary suppliers offered lower prices than wood product manufacturers. Indeed, sawmills largely rejected counter-offers as they firmly stuck to their price lists.
All eyes were on January 2026 as the extremely lean field inventories indicated a market underserved with supply for the upcoming spring building season.
In the week ending December 05, 2025 the price of Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) was US$380 mfbm, which was down -$10, or -3%, from the previous week when it was $390, said weekly forest products industry price guide newsletter Madison’s Lumber Reporter.
That week’s price was down -$25, or -6%, from one month ago when it was $405.
Commodity prices settled at or on either side of the previous week’s levels as seasonal quietude set in.
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KEY TAKE-AWAYS:
- Buyers of Western-SPF in the US continued to cover only what they needed within a timeframe of about a week or two.
- A small contingent of commercial buyers looked to cover early-1Q 2026 needs.
- Western-SPF suppliers in Canada reported declining demand and takeaway.
- Purchasing patterns favoured cautious short-term coverage.
- There continued a palpable spread between asking prices at the sawmill level and those in the distribution network.
- Retail purchasers of Eastern-SPF showed some hustle as more challenging coverage conditions became apparent amid less ample overall supply.
- Prices of Southern Yellow Pine were flat to sideways.
- The broader feeling in the US south was that the market had largely wrapped up for this year.
- Western Douglas fir sawmills held roughly two-week order files, so Eastern stocking wholesalers weren’t motivated to place orders for this year.
Madison’s Benchmark Top-Six Softwood Lumber and Panel Prices: Monthly Averages
