Severe winter weather continued across the continent into the beginning of February, stalling both construction projects and transportation of building materials.
As such, the prices of most softwood lumber commodities remained flat. Indeed, this stable trend matched exactly where prices had been one year ago. Industry players were pleased to see the recent market conditions provided the ability to make plans for the upcoming spring home building season. Some uncertainty remained, with variables like political decisions about potential tariffs causing confusion among both Canadian and US operators. However, the reality of the need for lumber was undeniable; for both new housing construction and for rebuilding after disasters like fire and storms.
While the next few weeks play out, industry will be able to see what level of demand there will be as the weather improves.
In the week ending February 7, 2025, the price of benchmark softwood lumber item Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) was US$445 mfbm.
This is flat from the previous week when it was $445, said weekly forest products industry price guide newsletter Madison’s Lumber Reporter.
That week’s price is flat from one month ago when it was $445.
The 30-day reprieve regarding tariffs on Canadian exports to the US firmly ensconced the week-to-week nature of business in North American wood products. Prices of panels further reversed course, gaining more price ground.
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KEY TAKE-AWAYS:
- Attitudes were low-key amid uncertainty regarding trade issues, negative lumber futures, and inclement weather.
- There was a burgeoning switch from SPF to SYP as buyers in the US explored reduced reliance on imports from Canada.
- Buyers and sellers remained uncertain about near-term business decisions regarding purchasing and inventory management.
- Most WSPF consuming regions experienced cold weather, slower transit times, and meagre construction activity.
- Canadian ESPF sawmills stuck to selling only what they could deliver ahead of the new alleged tariff date of February 1st.
- Southern Pine sawmills were chewing through their log decks amid wet weather that made replenishing their fibre stocks challenging.
- Overall supply with Eastern stocking wholesalers in New Jersey remained tight while in relative balance with weak demand, supporting flat price levels from suppliers.
Madison’s Benchmark Top-Six Softwood Lumber and Panel Prices: Monthly Averages
