JUNE 2026 BUILDING MATERIAL MARKET REFLECTION

Building Material Market Overview

The Western SPF lumber market strengthened significantly through June as tight supply conditions, lean inventories, and disciplined mill production drove buyers back into the market ahead of Canadian and U.S. holidays. Strong mill sales, extended order files, and limited availability of key tallies and specialty dimensions supported higher replacement costs and firmed up pricing. While end-user demand remained relatively measured, low inventory levels throughout the supply chain amplified the impact of even modest buying activity. Ongoing transportation challenges—including constrained truck capacity, seasonal driver shortages, longer lead times, and elevated freight costs—continued to support higher delivered pricing. Overall, market fundamentals point to a balanced market, with constrained supply and low inventories providing a solid foundation for further price strength in the near term.

Canada Housing Starts

Western SPF Lumber

• Dimensional lumber prices continued to strengthen, building on the gains from the month, although the pace of increases was more measured.
• Market acceptance of higher pricing improved, with continued buying activity supporting most dimensions; however, some variability remains as certain mills pursue more aggressive price increases.
• The near-term outlook remains positive, with continued market strength expected to support current pricing levels through July, and no significant indicators suggesting a downside risk at this time.

Oriented Strand Board (OSB)

• OSB demand remains subdued, despite a modest improvement in buyer inquiry and sentiment.
• Producer order files have extended into late July and August, supporting firmer pricing discussions.
• Fall pricing optimism is building, but buyers remain cautious and are not expecting significant near-term price increases.

Plywood

• Plywood pricing remains firm, supported by recent market gains, higher mill ask levels, and order files extending into early August.
• Channel inventories are gradually tightening, although distribution, retail, and contract positions remain generally adequate, with some contract offerings still priced below mill cash levels.
• Fall demand and pricing direction remain uncertain, leading most buyers to focus on near-term summer needs rather than building larger inventory positions.Bottom of Form

Engineered Wood Products (EWP)

• Engineered Wood Products (EWP) prices increased across all major producers, driven by rising raw material costs and sustained transportation and fuel expense pressures.
• Lead times lengthened as customers accelerated purchases ahead of announced price increases, resulting in stronger order files, production backlogs, and tighter near-term supply availability.

Building Materials

• Transportation capacity constraints continue to create logistical challenges, contributing to shipment delays and extended lead times across multiple product categories.
• Elevated fuel costs, freight surcharges, and broader inflationary pressures remain embedded throughout the supply chain, with geopolitical instability in the Middle East adding further cost uncertainty.
• These combined supply chain and cost pressures continue to support longer lead times and upward pricing momentum across most building material product lines.

Looking Through the Crystal Ball

The Western SPF lumber market enters July with a firm tone, supported more by supply constraints than by strong demand growth. Demand remains steady but unspectacular, with most buyers purchasing only what they need. However, lean inventories throughout the supply chain, disciplined mill production, and extended order files continue to limit available supply and support pricing.

Mills have maintained strong control of the market through production curtailments, seasonal downtime, and disciplined sales strategies. At the same time, transportation challenges—including trucking shortages, longer transit times, and elevated freight costs—continue to make replacement inventory more difficult and expensive to secure. Import uncertainty and wildfire-related risks are also contributing to a cautious supply environment.

The market continues to demonstrate that it does not require booming demand to remain firm. Buyers may be cautious, but limited inventory availability means routine replenishment activity is often enough to keep prices supported. As replacement costs move higher and certain products become more difficult to source, many customers are being forced back into the market to secure coverage.

Looking ahead, pricing is expected to remain stable to modestly higher through July. The market’s strength is being driven less by demand expansion and more by the absence of excess supply, which continues to limit downside risk. The key question for the balance of the summer will be whether buyers return to the sidelines once immediate building-season needs are covered, or if ongoing supply constraints continue to drive additional purchasing activity. For now, low inventories, disciplined production, and persistent logistical challenges provide a solid foundation for continued market stability and the potential for further incremental price gains.

FRAMING LUMBER

OSB

PLYWOOD

JUNE 2026 LUMBER MARKET REPORT HIGHLIGHTS:

Lumber prices continued to move higher as a slow post-holiday start gave way to stronger trading activity later in the week. Buyers covered immediate needs with minimal resistance to mill pricing, while tight supply and extending order files supported further gains.

#2&Btr SPF dimension lumber strengthened across most widths, led by 2×6, 2×8, and 2×10 products, which posted double- digit increases. Demand for 2×6 10′ and 16′ lengths was particularly strong, while 2×4 trading was comparatively slower and occasionally subject to buyer negotiation.

June 27, 2026 PANEL MARKET REPORT HIGHLIGHTS:

OSB prices remained stable across both Northern and Southern markets, with limited spot-market and rejected discounted offers, while Southern demand remained subdued due to a lack of buyer urgency.

Mill order files extended into late July and early August, reflecting balanced supply conditions despite light transaction volumes. Some Eastern Canadian sales were completed at higher prices, while others occurred below reported market levels, resulting in little overall prices movement.

Delivered markets generally tracked mill pricing, although occasional discounts were reported in western regions. In the Southwest, mills able to ship immediately captured small premiums, but transaction volumes were insufficient to support a broader market price increase.

*All Pricing is in CAD