Even While Bilateral Trade Issues Caused Confusion And Alarm Throughout
North American Industry — Forestry Players And Sawmills Included — Prices Of
Most Softwood Lumber Commodities Continued Stable Well Into January.
Many attitudes reflected caution; with some customers choosing to keep
purchases to immediate needs only, while others booked orders for two months
in advance to avoid potential new tariff charges. The distraction of
political barriers added unnecessary challenges to an already difficult
landscape. As well, harsh winter weather across many parts of the continent
stymied both construction projects and transportation. Expectations were
that weather issues would continue to the end of the month.
Despite all this, many looked forward to what will likely be a good spring
building season.
In the week ending January 24, 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.
That week’s price is down -$13, or -3%, from one month ago when it was $458.
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
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