JULY 2025 BUILDING MATERIAL MARKET REFLECTION

Building Material Market Overview

The North American lumber market continues to face significant challenges. While U.S. tariffs remain a dominant headline, recent developments have shifted attention to the Canadian–U.S. Softwood Lumber Agreement. Notably, duties for Canadian lumber producers exporting to the U.S. have doubled to 34%, creating immediate pricing pressures.

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Western SPF lumber After the new duty rates took effect, buyers on both sides of the border paused to assess pricing impacts. With demand already weak, mill sales slowed further, prompting strategic downtime and selective discounts to manage market softness.

OSB Mills are selling only to meet contracts, despite low prices. With no clear market driver, limited trading persists.

Plywood: Despite subdued demand, mills are managing output to avoid inventory buildup. With lead times extending into September, they’re not inclined to offer deep discounts.

EWP remains stable in both supply and pricing. Mills remain affected by the imposition of Canadian tariffs on U.S. goods.

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

Looking Through the Crystal Ball

Looking ahead into August, market uncertainty is expected to continue. While the new duty rates are now in effect, broader tariff discussions are gaining traction. Although not directly tied to lumber, these developments could have indirect economic impacts.

While most Canadian mills have increased prices in line with U.S. R/L print strength, a pricing gap is emerging between mill ask levels and customer acceptance. This suggests a developing two-tiered price between U.S. and Canadian markets.

FRAMING LUMBER

OSB

OSB mills are selling only to meet contracts, despite low prices. With no clear market driver, limited trading persists.

PLYWOOD

Plywood: Despite subdued demand, mills are managing output to avoid inventory buildup. With lead times extending into September, they’re not inclined to offer deep discounts.

AUGUST 01, 2025 LUMBER MARKET REPORT HIGHLIGHTS:

• Framing lumber trade on July 31 was shaped by rising duties, policy uncertainty, and limited demand,
  leading to volatile pricing and cautious buying.
• Western S-P-F prices were driven up by higher duties on Canadian lumber, but failed to trigger significant
  demand. Buyers remained cautious with sufficient inventories.
• Lumber Futures rose throughout the week as higher Canadian duty rates boosted market activity, despite
  mixed trading volumes and cautious interest in new contracts.
• Stud lumber demand stayed mostly flat, despite a week of intense market news, while prices rose across
  species and grades due to higher duties and selective buying.

AUGUST 01, 2025 PANEL MARKET REPORT HIGHLIGHTS:

• OSB prices continued to fall sharply across North America due to weak demand and oversupply,
  despite some mills reducing production.
• Discounts were widely available in Western delivery markets, with limited demand beyond existing
  contracts among distributors.
• Western plywood prices held firm and deeper discounts disappeared, with trade uncertainty and
  Brazilian tariffs stirring market discussions, though steady demand and buying patterns were seen.
• Canadian plywood mill order files extended into September with steady sales and reduced sheathing
  output. Trade uncertainty and cautious buying kept market discussions active.

*All Pricing is in CAD