MARCH 2025 BUILDING MATERIAL MARKET REFLECTION

Building Material Market Overview

A cautious tone permeated the Western S-P-F market through March as buyers covered only what they needed, not willing to speculate on how the market will react to the tariffs “possibly” coming into effect on April 2^nd. Mills also proceeded cautiously ensuring any U.S. business they took was able to cross the border before the deadline.

Canada Housing Starts

New Residential Construction Press Release

Lumber prices surged in early March due to tariff anticipation but fell back, ending the month with minimal change. Studs rose following February’s increase in 2×4 lumber.

OSB prices remained stable for most of March but softened toward the end as mills sought to attract buyers.

Plywood: Due to a sluggish market in Eastern Canada, mills adopted aggressive pricing strategies to establish a trading level. The quoted prices approached historically low levels, which generated some interest in the Western markets.

EWP mills continued to work on a pricing strategy going forward with the tariffs. We started to hear of price increases coming into play for April.

Building Materials saw price increase notices coming out as manufacturers and buyers braced for the incoming tariffs.

Looking Through the Crystal Ball

During uncertain times, inactivity is often the default response; this was notably the case in March. As stakeholders seek clarity, a resolution may still be several weeks away.

Producers typically increase prices by 25% to offset tariffs in these scenarios. However, it remains uncertain if the market will sustain such an increase. The final equilibrium price will likely settle somewhere between current and proposed prices, which may take a few weeks to establish.

Canadian lumber mills will need to evaluate their profitability under these new market conditions. If they are unprofitable, we may see curtailments and mill closures. This could exert pressure on pricing and product availability in the future.

FRAMING LUMBER

OSB

OSB prices remained stable for most of March but softened toward the end as mills sought to attract buyers.

PLYWOOD

Plywood: Due to a sluggish market in Eastern Canada, mills adopted aggressive pricing strategies to establish a trading level. The quoted prices approached historically low levels, which generated some interest in the Western markets.

MARCH 28, 2025 LUMBER MARKET REPORT HIGHLIGHTS:

• The framing lumber market lacked urgency, with sluggish sales, while Canadian producers prepared for potential tariffs and traders anticipated spring demand.
• Western S-P-F sales were inconsistent at the mill level due to tariff uncertainty, but some distributors saw strong sales as end users looked to fill immediate needs.
• Lumber Futures remained stable with light trading volumes, while a new Southern Pine futures contract has a launch date of March 31, 2025.
• Stud lumber sales were generally uneventful with stable prices, though potential tariffs and regional variations influenced market activity.

MARCH 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