Western Pallet Magazine May 2026 | Page 14

14 WESTERN PALLET

Demand for softwood lumber remained muted as customers felt only more cautious about external factors like macro-economic conditions and skyrocketing fuel prices. Sellers responded by continuing to keep their sold wood inventories low, as confusion reigned and no one wanted to get stuck with high-cost material if prices fall. Concern about having to fill inventory holes with material at below-replacement costs was on the top of everyone’s minds.

As in 2025, the instant snow melted some wildfires started. Indeed, British Columbia already put in a fire ban at the end of April. Sawmills had spent the winter focussed on timber harvest, so operators were well loaded up with fibre in their log yards. Whenever proper demand does arrive, lumber producers will be able to increase production to meet that. If business continues slow, sawmills will remain in curtailment/downtime.

KEY COMMENT:

Reports varied considerably between sawmills, print, and on-ground levels amid a broad sense of unease in the market; while Southern Yellow Pine continued its correction down.

Graph: Western-SPF & SYP 2x4 prices comparison

In the week ending May 1, 2026 the price of Western Spruce-Pine-Fir 2x4 #2&Btr KD (RL) was US$490 mfbm, which was flat from the previous week, said weekly forest products industry price guide newsletter Madison’s Lumber Reporter.

That week’s price was flat from one month ago.

For that same time period, the price of WSPF 2x4 #3/Utility was US$442 mfbm which was flat from the previous week. That week’s price was up $53, or 14%, from one month ago when it was $381.

As for WSPF 2x6 #3/Utility KD (RL), that price was US$350 mfbm which was flat from the previous week, and up $44, or 15%, from the previous month when it was $295.

KEY TAKE-AWAYS:

  • Players of Western-SPF in the US reported precious little slack in the system.

  • Purchasing continued to be on a lean, hand-to-mouth basis.

  • Limited overall supply and ongoing issues in transportation played havoc with production schedules and delivery timelines.

  • Demand for Western-SPF in the Canada was undeniably better than at the start of April.

  • Price spreads between sawmill-asking and on-the-ground grew further.

  • Trading volumes of Eastern-SPF were decent — though subpar for the time of year.

  • Southern Yellow Pine continued trading down in a freight vacuum, while price fragmentation and availability discrepancies increased again.

  • Delayed deliveries and frustrated retail customers abounded as trucking issues dominated much of the conversation.

  • Graph: Western-SPF & SYP 2x6 prices comparison

    • In the week ending May 1, 2026, the price of Southern Yellow Pine West Side 2x4 #2&Btr KD (RL) was US$448 mfbm. This was down $45, or 9%, from the previous week when it was $493.

    That week’s price was down $49, or 10%, from one month ago when it was $497.

    As well, for the beginning of May, SYP West 2x4 #3/Utility KD (RL) was US$425 mfbm, which was down $20, or 4%, from the previous week when it was $445 and was up $26, or 6%, from one month ago when it was $415.

    Graph: Western-SPF & SYP 2x6 prices comparison

    Lumber Supplies Tight on Industry Uncertainty