At the start of July, the dual Canada Day / US Independence Day long weekends brought a pause to lumber selling across North America.
As well, logistics were quite challenging on the transportation side. Demand did perk up slightly, however customers were mindful of the looming increase to softwood lumber duties on Canadian wood.
Sawmills showed limited supply, which did not deter buyers from their ongoing practice of not stocking inventory. Suppliers sold highly-specified loads while maintaining order files out past two weeks.
Of course, capacity utilization rates remain lower than optimal as the softwood lumber manufacturing industry experiences a significant increase in demand.
This will happen when interest rates fall enough to bring the construction of new homes in the US up higher than they are now in mid-2025.
In the week ending July 4, 2025, the price of benchmark softwood lumber item Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) was US$485 mfbm.
This is up +$5, or +1%, from the previous week when it was $480, said weekly forest products industry price guide newsletter Madison’s Lumber Reporter.
That week’s price is up +$17, or +4%, from one month ago when it was $468.
A dual national holiday-shortened week kept business to a minimum. Players largely looked to mid-July for an indication of how the market will head into summer.
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KEY TAKE-AWAYS:
- Sawmills reported narrow trading ranges, with gritty day-to-day sales efforts.
- Lumber market had a seriously disjointed feel.
- Retail purchasers refused to overextend their inventories while future business remained uncertain.
- Western S-P-F players in Canada received pushback from purchasers.
- Trading influenced by upcoming increases to softwood lumber duties.
- The dual national holidays brought logistical challenges.
- Supply dwindled as the week wore on, putting more pressure on active buyers to cover their short-term needs.
Madison’s Benchmark Top-Six Softwood Lumber and Panel Prices: Monthly Averages
