JANUARY 2026 BUILDING MATERIAL MARKET REFLECTION

Building Material Market Overview

January wrapped up on a moderately positive note, supported by steady purchasing activity and firmer mill pricing. Order files extended as the month progressed, pointing to healthier demand. Improved takeaway added early momentum, as sentiment shifted more optimistic across the sector.

With reduced supply throughout 2025 further tightening the market, these combined factors signaled the first indications of strengthening conditions and a more constructive outlook heading into Q1.

Canada Housing Starts

Western SPF Lumber

• 2×4 & 2×6 pricing continued increasing through January
• Levels plateaued near month‑end
• Order files now stretching into mid‑February

Oriented Strand Board (OSB)

• Prices rose at a slow, steady pace
• Supply remains tight, especially outside contract volumes
• Mills quoting into week 2–3 of February

Plywood

• Prices were down month over month
• Found a stable bottom at the end of January

Engineered Wood Products (EWP)

• Facing downward price pressure from customers.
• Supply remains stable for both Joist and LVL.
• No disruptions or shortages reported.

Building Materials

• Logistical delays due to winter weather + truck shortages.
• Entering Q1 2026 with minor price increases on select items.
• Steel‑related products up to +25%, driven by Canadian tariffs on Chinese imports.

Looking Through the Crystal Ball

Uncertainty Remains a Key Theme
Despite these encouraging signals, uncertainty continues to shape the broader environment. Challenges within the Canadian forestry sector, combined with ongoing economic and political instability across North America, are expected to persist through 2026. As a result, buyers remain sensitive to short‑term shifts and hesitant to overextend positions, keeping demand visibility somewhat clouded.

Mill Pricing & Supply Dynamics
Mills are holding firm on pricing after securing sales at higher levels. Limited prompt availability and manageable inventories across secondary channels continue to provide support. While demand softened slightly in the final week of January, most customers have covered near‑term needs and have shifted into a more “wait‑and‑see” posture.

Looking Ahead to Early February
The direction of the market will largely depend on whether January’s stronger takeaway carries forward. If momentum continues, current pricing is likely to hold or strengthen, with order files extending further. If it slows, price softening may emerge before stabilizing again as spring approaches.

Volatility Risk: Underbought Market
The market still feels underbought overall, leaving it highly reactive to supply‑side disruptions. Any mill curtailments, logistical challenges, or sudden demand spikes could quickly tighten supply.

FRAMING LUMBER

OSB

PLYWOOD

JANUARY 30, 2026 LUMBER MARKET REPORT HIGHLIGHTS:

JANUARY 30, 2026 PANEL MARKET REPORT HIGHLIGHTS:

*All Pricing is in CAD