Softwood lumber holds steady for 2 years after extreme swings of 2020-2022

Posted on February 27, 2025   |  

Lumber prices have stabilized after the extreme swings of 2020-2022, now fluctuating by about $150 mfbm seasonally, benefiting both producers and buyers.

Production levels remain lower than ideal, keeping supply limited despite steady prices.

High mortgage rates slowed home construction over the past two years, but with U.S. rates steady and Canadian rates dropping, more buyers are returning to the market.

Sawmills in the U.S. and Canada have the capacity to boost production as demand increases.

Mills are likely to ramp up production first before any major rise in lumber prices happens.

Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) prices reached $475 mfbm on February 14, 2025, up $30 (+7%) from the previous week, said weekly forest products industry price guide newsletter Madison’s Lumber Reporter.

Future lumber prices will depend on whether production growth continues consistently.