WPA Magazine June 2026 | Page 14

14 WESTERN PALLET

The May Long Weekends Kept Lumber Demand Soft

As the calendar turned to the respective Canadian and US May long weekends, most lumber prices remained generally flat.

The ongoing practice of hand-to-mouth business continued. Customers saw no reason to stock lumber inventory, placing orders for only the wood they knew they had immediate needs for. In view of that, suppliers kept manufacturing volumes lower to stay in line with this soft demand.

Along with the usual seasonal issues in transportation, specifically in sourcing trucks and rail cars, was sharply increasing fuel surcharges. Freight rates have ballooned significantly in the past couple of months, putting even greater pressure on costs for sawmills and other forest operators.

In total, there was general apathy and lack of urgency among buyers which is unusual for this time of year.

KEY COMMENT:

The strength of business was noticeably fragmented by region, species, and category.

Graph: Western-SPF & SYP 2x4 prices comparison

In the week ending May 29, 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 when it was $490.

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 $8, or 2%, from one month ago when it was $434.

As for WSPF 2x6 #3/Utility KD (RL), that price was US$350 mfbm which was flat from the previous week, and up $12, or 4%, from the previous month when it was $338.

KEY TAKE-AWAYS:

  • Buyers of Western-SPF in the US remained focussed on hand-to-mouth business on lacklustre downstream demand.

  • Western-SPF sawmills in Canada held enough supply to satisfy current demand levels.

  • There were a few pockets of challenging availability, with tighter supply in wider widths or straight lengths.

  • Sawmill order files in the West were only into the first or second week of June.

  • There was general apathy and lack of urgency among buyers of Eastern-SPF which is unusual for this time of year.

  • Persistently high, and rising, costs of freight further reduced suppliers’ margins.

  • Southern Yellow Pine prices still settled on either side of the previous week’s levels.

  • Discounted SYP material thinned out dramatically as buyers had stepped in to shore up their depleted inventories.

  • Eastern Stocking Wholesalers reported month-end machinations contributed to hesitation on the part of buyers.

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

    In the week ending May 29, 2026, the price of Southern Yellow Pine West Side 2x4 #2&Btr KD (RL) was US$412 mfbm which was flat from the previous week.

    That week’s price was down $3, or 1%, from one month ago when it was $415.

    As well, for the end of May, SYP West 2x4 #3/Utility KD (RL) was US$360 mfbm, which was flat from the previous week and was down $70, or 16%, from one month ago when it was $441.

    As for SYP West 2x6 #3/Utility KD (RL), that price was US$335 mfbm, which was flat from the previous week and was down $36, or 10%, from one month ago when it was $373.

    The different strategies between the various regions of North America this year is very interesting; as the northern sawmills continued to keep production volumes down thus lumber prices stayed mostly flat, the south attempted to capture enthusiasm for the usual spring buy — which this year did not materialize — by drastically increasing prices.

    For the latter, customers refused to accept those price spikes, responded with strict counter-offers, and kept to purchasing for immediate needs only. So those suppliers had to reduce prices back down to acceptable levels.