Lumber buyers across North America felt no sense of urgency to stock up on solid wood products, thus into mid-April prices softened further.
Historically in the seasonal cycle, at this time of early spring there would be an increase in lumber buying as builders and retailers make purchases for the upcoming construction season. This year suppliers and customers alike were very cautious, as continued and ongoing disruptions from political leaders has made it difficult to plan.
Most players preferred to not increase inventory and take the chance of getting caught short of the wood they will need, rather than buying in advance only to suffer some penalty or increased charge later upon delivery.
This muted demand caused a drop in lumber prices even while inventory levels across the US and Canada remain quite low.
In the week ending April 11, 2025 the price of Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) was US$505 mfbm, which is down -$40, or -7%, from the previous week when it was $545, said weekly forest products industry price guide newsletter Madison’s Lumber Reporter.
That week’s price is down -$36, or -7%, from one month ago when it was $541.
Those waiting for a clearer direction to business after Wednesday’s tariff announcement would have to wait a little longer as the market needed time to digest this latest development.
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KEY TAKE-AWAYS:
- The North American lumber market recalibrated after 90-day reprieve on reciprocal tariffs was announced.
- Prices at sawmills varied considerably, as it did among distributers.
- Customers found it challenging to determine what they were willing to pay.
- Price lists and product accumulations differed from mill-to-mill, while lumber futures reflected the market-wide confusion.
- In Western Canada the majority of WSPF buyers were still reluctant to buy while some found attractive price levels.
- Virtually no one was willing to stake out anything resembling a long position.
Madison’s Benchmark Top-Six Softwood Lumber and Panel Prices: Monthly Averages
