FEBRUARY 2025 BUILDING MATERIAL MARKET REFLECTION

Building Material Market Overview

Markets remained uncertain throughout February with ongoing extensions to the incoming tariffs, though Western S-P-F mills extended order files for U.S. business while they could still ship across the border without penalty. Buyers initially took positions on products they expected to see price increases due to the tariffs but have since adopted a wait-and-see approach.  Additionally, a cold snap covering much of North America slowed consumption for most of the month.

Canada Housing Starts

New Residential Construction Press Release

Lumber prices remained relatively flat with the exception of 2×4 which pushed upwards, closing its large discount to 2×6 that had been existing for months.

OSB moved upwards up the first half of the month and then leveled off as we head into March.

Plywood followed a similar pattern to OSB showing some strength to start the month then prices flattened out as Feb came to a close.

EWP pricing remains stable for the time being but will be affected by any potential tariffs should they be implemented.

Building Materials pricing and availability remains good, but this will also be impacted by the potential tariffs that could be implemented in April.

Looking Through the Crystal Ball

Market uncertainty continues due to the fluctuating tariff situation between Canada and the U.S. As negotiations progress towards the new April deadline for incoming tariffs, the market remains in a state of limbo. This ongoing uncertainty is causing buyers and producers to hesitate, impacting purchasing decisions and production plans. Both sides are keenly anticipating a clearer picture of future costs, which is crucial for stabilizing market conditions and planning ahead as we head into the spring building season.

FRAMING LUMBER

OSB

OSB moved upwards up the first half of the month and then leveled off as we head into March.

PLYWOOD

Plywood followed a similar pattern to OSB showing some strength to start the month then prices flattened out as Feb came to a close.

FEBRUARY 28, 2025 LUMBER MARKET REPORT HIGHLIGHTS:

• Framing lumber markets were largely impacted by tariff uncertainties and prices jumped up higher. Framing Lumber Composite Price reached highest level since July 2023.
• Western S-P-F prices increased and experienced moderate sales volumes. Many traders were frustrated with the United States’ handling over tariffs.
• Lumber Futures were immensely volatile this past week and largely affected by tariff concerns. Stronger volumes surfaced later in the week with the March contract trading higher.
• Stud lumber prices continued to increase in many areas with supply tightening, however, sales did start to slow in some species.

FEBRUARY 28, 2025 PANEL MARKET REPORT HIGHLIGHTS:

• OSB market did not see much movement as many Canadian mills pulled off the market.
• Regional flooding after the snowstorms further caused consumption to decrease in northern markets.
• Western plywood sales were quiet amidst tariff concerns. Traders in the market made minimal purchases.
• Canadian plywood mill order files remained still due to minimal buyer interest and recent weather impacts. Distributors reported modest sales and negotiable offerings.

*All Pricing is in CAD