AUGUST 2025 BUILDING MATERIAL MARKET REFLECTION

Building Material Market Overview

The North American lumber market remains strained as Canadian mills maintain elevated prices following a 34% duty hike, while U.S. buyers hesitate to engage. Recently, mills have begun easing prices and accepting more counteroffers. A backlog of pre-duty shipments continues to weigh on inventories, prompting deeper discounts as mills seek a trading floor. Buyers are cautiously returning, sensing limited downside risk.

New Residential Construction Press Release

Canada Housing Starts

Western SPF lumber continues to face resistance post-duty hike, with Random Lengths struggling at revised mill prices. Mills are lowering asks and seeking a trading floor, but demand remains muted.

OSB prices remain stagnant across North America due to subdued market activity and cautious buyer sentiment.

Plywood: Buyers remain selective, purchasing only as needed. While demand isn’t strong, it’s steady enough to support current mill pricing and production schedules.

EWP remains stable in both supply and pricing. News of Canadian reciprocal tariffs being repealed by the Canadian government was welcome by the Canadian industry.

Building Materials: Supply remains stable, with modest increases observed on tariff-affected products.

Looking Through the Crystal Ball

The industry welcomed news that Canadian reciprocal tariffs will be removed on September 1st, renewing optimism for a negotiated resolution to the longstanding Canada–U.S. trade dispute.

Commodity markets remain unsettled. Mills face resistance at current asking levels and are working to clear excess production. Soft demand has led buyers to delay purchases, increasing pressure for a supply-side correction.

While no formal mill curtailments have been announced, continued price erosion suggests they may be only a matter of time.

Despite hopes for a seasonal demand uptick, recent years have tempered expectations for a strong fall push. Optimism persists, but most anticipate flat demand, with affordability concerns still weighing on sentiment. Potential U.S. rate cuts may offer support, though the market remains oversupplied and lacks clear momentum.

FRAMING LUMBER

OSB

OSB prices remain stagnant across North America due to subdued market activity and cautious buyer sentiment.

PLYWOOD

Plywood: Buyers remain selective, purchasing only as needed. While demand isn’t strong, it’s steady enough to support current mill pricing and production schedules.

AUGUST 29, 2025 LUMBER MARKET REPORT HIGHLIGHTS:

• Framing lumber markets weakened further ahead of the holiday weekend, with steeper price drops, quiet
  sales, and low trader confidence reflecting continued industry struggles.
• In Western S-P-F, many mills lowered prices or withdrew from the market due to weak demand and
  abundant supply, while buyers remained cautious and limited purchases to fill essential inventory needs.
• Lumber Futures continued to fall sharply during the week, briefly stabilizing after modest buying, but still
  ended at a discount to cash in most species.
• Stud lumber prices persisted to fall across various trims and regions, with some buyers stepping in to
  take advantage of the discounts while others held back due to inconsistent pricing.

AUGUST 29, 2025 PANEL MARKET REPORT HIGHLIGHTS:

• OSB trading slowed down sharply across North America as weak demand and ample supply kept
  buyers cautious.
• Prices were mostly flat, and sales were limited to immediate needs.
• Western plywood trading remained steady but cautious, with limited sales driven by immediate
  needs and concerns about economic conditions still remaining.
• Canadian plywood demand stayed soft at mills as buyers relied on contract volumes, often reselling
  below mill pricing, while smaller distribution yard orders remained in steady demand.

*All Pricing is in CAD