As April waned and talk of potential tariffs on Canadian lumber entering the US faded, prices of North American construction framing dimension softwood lumber settled down to proper levels given existing supply-demand conditions.
The fact that demand remained quite soft, particularly for the time of year when new home building normally would be increasing, was lost on no one. The recent shift in buying by US customer interest toward Southern Yellow Pine and away from Spruce-Pine-Fir had topped out, with prices responding out of correction mode.
There remained more questions than answers; specifically regarding macro-economic conditions and the ongoing muted housing starts.
While some uncertainty was resolved, expectations for coming spring building season remained unclear.
In the week ending April 25, 2025 the price of Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) was US$470 mfbm, which is flat from the previous week when it was $470, said weekly forest products industry price guide newsletter Madison’s Lumber Reporter.
That week’s price is down -$71, or -13%, from one month ago when it was $541.
Demand for most segments of the North American solid wood products market continued to meander despondently. Southern yellow pine appeared to be the only bright spot.
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KEY TAKE-AWAYS:
- The lumber market was characterized by low-key but stable trading.
- Commodity prices varied significantly between primary and secondary suppliers, further ensconcing buyers on the sidelines.
- More consistent trading ranges were hammered out; buyers and sellers worked together to get deals done.
- Takeaway remained subpar, thus Canadian Western S-P-F sawmills continued to quietly accumulate material.
- Already-reticent buyers held off making purchases in hopes of further price corrections.
- Substantial demand for Eastern S-P-F was reported.
- Demand for Southern Yellow Pine continued to outperform that of the rest of the North American lumber market.
- Among the busiest buyers of SYP were treaters, who make up a large portion of the market base and played a large role in keeping prices elevated.
Madison’s Benchmark Top-Six Softwood Lumber and Panel Prices: Monthly Averages
