Most Lumber Prices Flat with Summer Slow-Down
June 2025
June 2025
A decidedly underwhelming 2025 spring building season slid into the usual summer slowdown for the North American lumber industry. Only the continued sawmill curtailments helped keep most prices generally flat, as demand remained uninspired at best. Customers made the rounds between producers and secondary suppliers in search of the best deals they could find.
The sawmills, having kept manufacturing volumes reduced, were able to build out their order files past the two-week mark. As such, they were not much inclined to hear counter-offers, keeping their prices mostly firm. Resellers were more amenable to negotiating, if only to move wood out of their storage yards.
For their part, purchasers continued their now long-time habit of not stocking inventory and of just-in-time buying.
KEY COMMENT:
Sales of Eastern S-P-F began to pull ahead of Western, while demand for Southern Yellow Pine continued to flounder. See graph at this link.
In the week ending June 27, 2025, the price of benchmark softwood lumber item Western Spruce-Pine-Fir 2x4 #2&Btr KD (RL) was US$480 mfbm. This is up +$5, or +1%, from the previous week when it was $475, said weekly forest products industry price guide newsletter Madison’s Lumber Reporter.
Canada and the US.
While demand for Eastern S-P-F remained below seasonal standards, firming prices and limited supply prompted increased sales.
Order files at Eastern sawmills extended through the two-week summer shutdowns planned for late July.
Extreme heat in the US Southeast affected building activity, while thunderstorms in the Southwest disrupted forestry operations for Southern Yellow Pine operators.
Eastern stocking wholesalers noted that Douglas fir mills kept their prices firm, were not receptive to major counter offers.
https://madisonsreport.com/wp-content/uploads/2025/06/MadisonsGraph2x6-1-scaled.png
In the week ending June 27, 2025, the price of Southern Yellow Pine West Side 2x4 #2&Btr KD (RL) was US$342 mfbm. This was down -$10, or -3%, from the previous week when it was $352.
That week’s price was down -$107, or -24%, from one month ago when it was $449.
As well, for the end of June, SYP West 2x4 #3/Utility KD (RL) was US$302 mfbm, which was up +$2, or +1%, from the previous week when it was $300 and was down -$109, or -27%, from one month ago when it was $411.
As for SYP West 2x6 #3/Utility KD (RL), that price was US$212 mfbm, which was up +$2, or -1%, from the previous week when it was $210 and was down -$88, or -29%, from one month ago when it was $300.
Lumber producers kept manufacturing volumes lower to keep supply in line with still-muted demand. Capacity utilization rates at North America sawmills have been well below optimal levels for approximately 2 years, since rising interest rates brought slower home sales thus reduced new housing starts. Solid wood manufacturers prefer to keep production volumes higher, due to the very complex process of securing log supply over a longer term.
As such, maintaining balance between amount of sales and prices can get tricky. As true summer months this year arrive, it seems this balance has been achieved; as lumber prices reversed recent drops and started climbing.
July 2025
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