APRIL 2025 BUILDING MATERIAL MARKET REFLECTION

Building Material Market Overview

Business on both sides of the border remains sluggish due to economic uncertainties and tariffs. Buyers are cautious, purchasing only as needed, and are benefiting from the prompt availability of supplies from both mills and distribution channels. This situation has applied downward pressure on the prices of commodity lumber and OSB.

Canada Housing Starts

New Residential Construction Press Release

Downward pressure persisted on lumber through April and into May. Prompt wood is available through both mill direct and distribution channels allowing buyers to keep inventories lean.

OSB prices finally succumbed to the stagnant markets, giving way to double digit decreases to end April.

Plywood was able to finish with pricing up slightly month over month, as mills were able to extend order files well into May.

EWP pricing stabilized as CBSA eased tariffs on products coming into Canada from the United States.

Building Materials: We continue to see price increases on many products affected by the tariffs.

Looking Through the Crystal Ball

With the conclusion of the Canadian election on April 28th, there is renewed hope for negotiated agreements on tariffs imposed by both Canada and the United States. However, economic uncertainties persist on both sides of the border, leading to a stagnant housing market in both countries. This stagnation continues to erode prices, pushing them below break-even costs for some lumber and OSB mills. Coupled with the expectation of limited demand increases, it is likely that we may see mills announcing curtailments sooner rather than later.

A key metric to monitor is the current spread between Southern Yellow Pine (SYP) and Western SPF lumber. Southern Yellow Pine is currently at a premium of +$43/M. Historically, it trades at a -$126/M discount to Western SPF.

There are three potential scenarios to consider:

1. Southern Yellow Pine is too expensive and will decrease in price towards Western SPF.
2. Western SPF is too cheap and will increase in price towards Southern Yellow Pine.
3. Most likely, a combination of both adjustments will occur.

FRAMING LUMBER

OSB

OSB prices finally succumbed to the stagnant markets, giving way to double digit decreases to end April.

PLYWOOD

Plywood: was able to finish with pricing up slightly month over month. As mills were able to extend order files well into May.

MAY 1, 2025 LUMBER MARKET REPORT HIGHLIGHTS:

• Framing lumber prices in North America continued to decline, leading to cautious buying and logistical
  challenges.
• Western S-P-F prices fell due to weak demand and ample supplies, with significant discounts in various
  dimensions and mixed sales.
• Lumber Futures declined steadily throughout the week, reflecting the quiet cash market and modest
  trading volumes.
• Stud lumber prices fell across most species with weak demand and abundant supply. Steep discounts
  could be found in various trims.

MAY 1, 2025 PANEL MARKET REPORT HIGHLIGHTS:

• OSB prices continued to drop due to excess supply, with varying discounts across regions and mixed
  trends in sheathing and flooring.
• Dealers and distributors didn’t see enough potential for price increases to justify stocking up on
  inventory.
• Western plywood prices firmed as mills resisted counters, supported by lower inventories and
  upcoming closure of SDS Lumber’s plywood mill.
• Canadian plywood buyers showed little interest, leading to reduced shipments and difficulty in
  identifying prices, despite some unexpected sales of lower grade sheathing.

*All Pricing is in CAD