WPA Magazine - The Operating Manual for Your Pallet Business August 2026 | Page 14

14 WESTERN PALLET

Lumber Prices Remained Flat, While Plywood Experienced Shocking Reversals

The most important thing to note for mid-July 2026 was that the benchmark Western S-P-F 2×4 price was equal to same week last year. As Madison’s has said before during this year; we now know what is the price bottom for lumber products.

A quick look at the graphs below shows that the same week two years ago, this benchmark WSPF 2×4 prices was 51% lower than it is now, at US$332 mfbm. Do not expect to see those prices again as 1) that is below cost-of-production, and 2) the sawmills will not bring more lumber manufacturing online until demand improves significantly.

Key Comment:

Plywood experienced shocking reversals which suddenly pushed those mill order files into early September; while most other segment prices remained flat.

Graph: Western-SPF & SYP 2x4 prices comparison

In the week ending July 31, 2026 the price of Western Spruce-Pine-Fir 2x4 #2&Btr KD (RL) was US$516 mfbm, which was up +$6, or +1% from the previous week when it was $510, said weekly forest products industry price guide newsletter Madison’s Lumber Reporter.

That week’s price was up $10, or 2%, from one month ago when it was $495. For that same time period, the price of WSPF 2x4 #3/Utility was US$434 mfbm which was down $10, or 2%, from the previous week when it was $444. That week’s price was up $3, or 1%, from one month ago when it was $445.

As for WSPF 2x6 #3/Utility KD (RL), that price was US$330 mfbm which was down $5, or 1%, from the previous week when it was $335, and was almost flat from the previous month when it was $336.

KEY TAKE-AWAYS:

Western-SPF sawmills in the US maintained lead times as far out as the week of August 17th, with not much inventory for August 10th shipment.

Buyers remained loathe to take anything resembling a long position.

Sales of Western-SPF in Canada appeared to lose more momentum as summer vacations took precedence over booking new orders.

Tight supply continued to drive firm or upward pricing in standard and premium grades.

Prices levels for Eastern-SPF were elusive to pin down since Eastern producers were in the midst of summer shutdowns.

In most regions of North America, the ongoing situation of fewer large-diameter logs meant wides were only more scarce.

Several sources referred to Southern Yellow Pine sales as “sloppy”.

Sensing weakness, retail customers and other buyers felt they had leverage, thus pushed steep counter-offers.

On the US northeastern seaboard, holes in buyers’ inventories were undeniable and growing.

Graph: Western-SPF & SYP 2x6 prices comparison

In the week ending July 31, 2026, the price of Southern Yellow Pine West Side 2x4 #2&Btr KD (RL) was US$425 mfbm, which was down -$10, or -2%, from the previous week when it was $435. That week’s price was down -$8, or -2%, from one month ago when it was $433.

As well, for the end of July, SYP West 2x4 #3/Utility KD (RL) was US$350 mfbm, which was down $10, or 3%, from the previous week when it was $360 and was down $11, or 3%, from one month ago when it was $361.

As for SYP West 2x6 #3/Utility KD (RL), that price was US$330 mfbm, which was down $5, or 1%, from the previous week when it was $335, and was down $6, or 1%, from one month ago when it was $336.

New housing construction for the past couple of years has been uninspiring at best. The response from lumber producers has been to keep manufacturing volumes lower so supply will stay in line with demand. Evidence that this discipline is working is demonstrated by the very regular price changes throughout the year, as home building season comes on then wanes.