JANUARY 2025 BUILDING MATERIAL MARKET REFLECTION

Building Material Market Overview

As the discussion around potential tariffs took center stage in January, companies were allowed some time to develop strategies before the 30-day grace period ends. A “pause” in the commodity markets was seen as stakeholders awaited details on the affected products and their potential impacts. On February 1st, the U.S. clarified its intended tariffs, and Canada outlined its retaliatory measures. The 30-day extension before the tariffs take effect offered a brief respite.

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Most Western SPF lumber product prices stayed relatively stable, except for 2×6 lumber, which began to drop from its previously high premiums. Buying activity was subdued as concerns about tariffs and their potential impacts dominated the market’s attention.

OSB prices fell hard and fast through January. Canadian producers looked to take on as much Canadian business as possible ahead of the potential tariffs. Pricing found a bottom at the end of the month with order files out into mid-March and a mill fire in Eastern Canada expect prices to firm up in February.

Plywood prices also fell rapidly in January. However, by the end of the month, they had stabilized and have since begun to rise gradually.

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 March.

Looking Through the Crystal Ball

With clearer information on the products subject to tariffs by the U.S. and Canada, buyers are now planning their strategies for when the 30-day grace period ends. However, this preparation might be unnecessary if the two countries reach an agreement that eliminates the tariffs. In the meantime, I anticipate that some inventories will be increased for certain products to hedge against price fluctuations. If the tariffs persist, they will become part of the new business costs, ultimately leading to higher prices for consumers.

FRAMING LUMBER

OSB

OSB prices fell hard and fast through January. Canadian producers looked to take on as much Canadian business as possible ahead of the potential tariffs. Pricing found a bottom at the end of the month with order files out into mid-March and a mill fire in Eastern Canada expect prices to firm up in February.

PLYWOOD

Plywood prices also fell rapidly in January. However, by the end of the month, they had stabilized and have since begun to rise gradually.

JANUARY 31, 2025 LUMBER MARKET REPORT HIGHLIGHTS:

• Framing lumber markets remained steady as traders hesitated due to potential tariffs on Canadian imports. Slight fluctuations were seen in pricing.
• Western S-P-F experienced a slow week as traders awaited tariff news and winter weather impacted buyers’ intent to purchase.
• Lumber Futures had the March contract see an incline during the week before dropping again on Friday.
  Lumber prices fluctuated significantly with anticipation of upcoming tariffs looming.
• Stud lumber prices were largely stable, amid quiet sales and modest discounts. Some items showed widened trading ranges and mixed demand.

JANUARY 31, 2025 PANEL MARKET REPORT HIGHLIGHTS:

• OSB prices rebounded with producers ending the week on strong premiums.
• Northern pricing gains were more moderate as compared to Southern mills.
• Western plywood mills were seen using defensive pricing strategies in response to thin margins and precautionary orders being placed.
• Canadian plywood mill inquiries increased with more active buying and dwindling inventories seen. Slight price upticks were reported late in the week as traders anticipated tariffs.

*All Pricing is in CAD