The long-awaited announcement about tariffs on Canadian lumber entering the US was made; the solid wood manufacturing industry across North America collectively breathed a sigh of relief to find there would not be such.
This uncertainty had brought many delays across the continent, as various players responded differently to the potential threat. Some had held off buying altogether, preferring to wait for clarity from capricious political leaders. Others had ordered wood in advance in the expectation of delivery prior to any possible tariff constraint.
Still others decidedly switched their purchasing to Southern Yellow Pine materials from the northern species of Spruce-Pine-Fir. This palpable increase of southern pine lumber prices vs SPF reached a top, as those customers locally within the US received the lumber they needed for ongoing projects.
In the greater scope, the entire industry was able to assess the current situation; buyers and sellers worked together to determine where existing price levels would land.
In the week ending April 18, 2025, the price of benchmark softwood lumber item Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) was US$470 mfbm.
This is down -$35, or -7%, from the previous week when it was $505, said weekly forest products industry price guide newsletter Madison’s Lumber Reporter.
That week’s price is down -$53, or -11%, from one month ago when it was $467.
Western- and Eastern-SPF markets seemed vulnerable while prices of Southern Yellow Pine continued to strengthen by comparison.
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KEY TAKE-AWAYS:
- Commodity prices continued to vary considerably as price lists and accumulations differed from mill-to-mill.
- There were wide price-spreads reported at the sawmill level and among distributers.
- Canadian mills jumped in after a period of relative inactivity; there were better sales of Western S-P-F on both sides of the border.
- After getting whipsaw fatigue over the past two months, Western Canadian suppliers hoped to see the market settle down.
- Field inventories stayed thin.
- Supply crept ahead of vacillating demand.
- Eastern Canadian suppliers found themselves in price discovery mode.
- Even after Wednesday’s tariff announcement, players would have to wait for clarity as the market needed to digest this latest development.
Madison’s Benchmark Top-Six Softwood Lumber and Panel Prices: Monthly Averages
