In advance of yet another round of increased tariffs on Canadian softwood
lumber entering the US, prices rose slightly.
In view of ongoing lower production volumes thus lean supply, the race to
have wood shipped across the border in advance of this new charge was enough
to bring lumber prices higher.
Confusion reigned as the Customs information for these new tariffs was vague
at best.
Operators once again had to decipher which product groups specifically were
subject to the latest announcement; the list of specific HS Codes left room
for interpretation.
Indeed, Madison’s was alerted by a US Customs Broker that T&G (tongue &
groove) lumber was not on the list, meaning that if Canadian sawmills
edge-groove their lumber in the
production process that product is not subject to this new tariff.
Were the US Administration to later add that HS Code to the list, any tariff
can not be applied retroactively.
In the week ending October 10, 2025, the price of benchmark softwood lumber
item Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) was US$442 mfbm. This was up
+$6, or +1%, from the previous week when it was $436, said weekly forest
products industry price guide newsletter Madison’s Lumber Reporter.
That week’s price was up +$17, or +4%, from one month ago when it was $425.
Compared to the same week last year, when it was us$388 mfbm, the price of
western spruce-pine-fir 2×4 #2&btr kd (rl) for the week ending October 10,
2025 was up +$54, or +14%.
Compared to two years ago when it was $400, that week’s price was up +$42,
or +11%
...
KEY TAKE-AWAYS:
Plenty of Western-SPF sawmills in the US sold ahead of their current
positions, and extended order files into the back half of October.
Western-SPF producers in Canada booked improved sales and firmed up prices
on several key items.
Perception was that inventories throughout the supply chain were finally
topped up enough to elicit a digestion period.
Canadian sawmills got enough takeaway to extend their order files into late
October, and beyond in some cases.
Eastern-SPF sellers were busy as limited supply and elevated mill asking
prices spurred waves of purchases.
Secondary suppliers had some material remaining at below mill replacement
costs, for purchasers plugging holes in their waning inventories.
Discounted Southern Yellow Pine material dwindled thus commodity prices were
steady or up from the previous week.
Stocking wholesalers at the ports in New Jersey reported buyers were cagey
and noncommittal, demand was subdued, and autumn construction activity was
underwhelming.
MADISON’S BENCHMARK TOP-SIX SOFTWOOD LUMBER AND PANEL PRICES: MONTHLY
AVERAGES
Source:
madisonsreport.com
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