In Mid-May, Some Benchmark Construction Framing Dimension Softwood Lumber
Prices Bounced Slightly As Players Recognized A Bottom Had Been Reached.
The sentiment among players remained cautious due to ongoing uncertainty in
the greater economic landscape, however there was a move to replenish
severely depleted inventories. The usual seasonal supply-chain issues
resurfaced, with operators in the US south especially finding it difficult
to source trucks to move their wares.
Indications from the housing market suggested there might be an increase in
activity as this building season truly came on. Meanwhile, several wildfires
broke out in central Canada and in the northeast US. At time of writing the
rebuilding and reconstruction from both
Hurricane Helene and the Los Angeles fires had not even begun in earnest;
expectations are that both of these activities will drive up demand for
lumber over the next few months.
In the week ending May 16, 2025, the price of benchmark softwood lumber item
Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) was US$444 mfbm.
This is up +$14, or +3%, from the previous week when it was $430, said
weekly forest products industry price guide newsletter Madison’s Lumber
Reporter.
That week’s price is up +$14, or +3%, from one month ago when it was $498.
Compared To The Same Week Last Year, When It Was Us$383 Mfbm, The Price Of
Western Spruce-Pine-Fir 2×4 #2&Btr Kd (Rl) For The Week Ending May 16, 2025
Was Up +$61, Or +16%.
Compared To Two Years Ago When It Was $360, That Week’S Price Was Up +$84,
Or +23%.
KEY TAKE-AWAYS:
Players thought several factors pointed to a recrudescent market.
Traders reported a good mixture of rail and truck business, though total
sales volumes remained underwhelming for the spring season.
Demand for Western S-P-F in Canada shifted palpably.
Buyers were markedly busier; most suppliers reported a tangible boost in
inquiries.
Transactions were signified by a lack of follow-through from buyers, as well
as ongoing trend of steep counteroffers.
Buyers still had plenty of options between sawmills and secondaries to cover
their close-term needs in a timely manner.
Eastern S-P-F commodity prices continued to vary considerably between mills
and at the distribution level.
Recent sharp price drops seemed to be over; many purchasers stepped in to
replenish their nearly depleted inventories.
Heavy spring rain in several key Southern Yellow Pine sourcing regions
restricted access to large-diameter logs.
MADISON’S BENCHMARK TOP-SIX SOFTWOOD LUMBER AND PANEL PRICES: MONTHLY
AVERAGES
Source:
madisonsreport.com
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