The Latest Increased Lumber Tariff Came Into Effect, This Time Another 10%
On Canadian Dimension Lumber And Cabinets/Furniture, Yet It Was Limited
Supply Which Drove Prices Up Further.
The rush to have lumber imports from Canada cross the border into US in
advance of the new, additional, duty, was enough to push demand higher than
existing supply. During this time of ongoing uncertainty, both with housing
construction and with trade barriers, customers continued to keep their
inventories are lean as possible.
As repeatedly warned by Madison’s over the past couple of years; this
practice of caution can become a problem if the bulk of customers book an
increase in orders at the same time. Since even wholesalers are not stocking
inventory, the rush to purchase goes to the sawmills which then can only
push prices higher.
While the new, additional, duty did play a role in this latest price
increase, it was the continued lack of supply in the field which caused this
latest rise.
In the week ending October 17, 2025 the price of Western Spruce-Pine-Fir 2×4
#2&Btr KD (RL) was US$487 mfbm, which was up +$45, or +10%, from the
previous week when it was $442, said weekly forest products industry price
guide newsletter Madison’s Lumber Reporter.
That week’s price was up +$62, or +5%, 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 17,
2025 Was Up +$99, Or +26%.
Compared To Two Years Ago When It Was $382, That Week’S Price Was Up +$105,
Or +27%.
...
KEY TAKE-AWAYS:
Ongoing shift adjustments, curtailments, and even sawmill shutdowns for
Western-SPF producers in Canada reduced capacity across the lumber industry.
The Canadian Thanksgiving holiday Monday ensured that shunting more wood
across the border into stateside reloads before Tuesday was a difficult task
for US customers.
The need for more dimension lumber was apparent, even if US buyers were
hesitant to act so soon after the increase in cost was applied.
Eastern-SPF suppliers in Canada tried to get as much product across the
border as they could in a slim timeframe.
US buyers scoured the landscape for the best deals as demand was focussed on
finding lower priced items.
Prices varied widely between sources, with little to no consistency among
the mills leading to greater reliance on the distribution network.
Demand from US customers was expected to increase once they find their
post-tariff footing.
Southern Yellow Pine buyers remained keyed in on cash wood with quick
shipment, even as demand seemed better overall.
Most of the buildups that resulted in discounted material seen through
September were cleaned up, although certain producers showed accumulations
on their sales lists.
The all-important treater market, which consumes a substantial portion of
total SYP production, was busy buying and processing before colder weather
arrives.
MADISON’S BENCHMARK TOP-SIX SOFTWOOD LUMBER AND PANEL PRICES: MONTHLY
AVERAGES
Source:
madisonsreport.com
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