APRIL 2026 BUILDING MATERIAL MARKET REFLECTION

Building Material Market Overview

April saw the Western SPF markets continue to search for clear direction, with overall conditions remaining relatively balanced between supply and demand. This equilibrium helped keep pricing relatively stable across most product lines.

Current indicators suggest this stability will persist in the short term, with the market expected to trade within a narrow range as seasonal momentum builds gradually into Q2. While underlying conditions remain neutral, buyers and sellers are closely watching for stronger demand signals that could shift the current balance and provide a clearer direction for the market.

Canada Housing Starts

Western SPF Lumber

• Balanced market, modest demand lift: Seasonal improvement supported slightly better takeaway, but demand remained insufficient to significantly tighten supply.
• Stable pricing with ongoing competition: Prices held largely steady as mills and secondaries continued to compete for volume in a well-supplied environment.
• Emerging risks but no breakout yet: Logistics constraints and curtailments present tightening risk, though the market continues to trade in a narrow, range-bound pattern heading into Q2.

Oriented Strand Board (OSB)

• Balanced but well-supplied market: Western Canadian OSB remained adequately supplied in April, with production and inventories sufficient to meet modest demand levels.
• Stable to slightly downward pressured pricing: Prices held relatively steady overall, though cautious buying behavior limited upward momentum.
• Seasonal demand building gradually: Early Spring activity provided a mild lift in takeaway, but not enough to influence the market, keeping conditions range-bound heading into Q2.

Plywood

• Firm tone with gradual price gains: Plywood prices edged higher in both Eastern and Western markets, supported by steady demand and mill order files extending into June.
• Regional demand dynamics: Eastern markets benefited from higher U.S. pricing, reinforcing demand for Canadian sheathing, while Western activity remained steady with a focus on contract fulfillment and inventory drawdown.
• Measured buying behavior: Customers continued a hand‑to‑mouth approach, relying on distribution rather than committing to large volumes, keeping the market tightening gradually.

Engineered Wood Products (EWP)

• Pricing facing modest downward pressure as producers push to capture market share
• Supply remains stable across joists and LVL, with no reported disruptions or shortages

Building Materials

• Ongoing logistical delays driven by transportation constraints.
• Fuel surcharges and cost inflation continue to impact all product categories, influenced by geopolitical tensions in the Middle East
• These factors are extending lead times and contributing to upward pricing pressure across most product lines

Looking Through the Crystal Ball

The tone heading into May reflects measured optimism, but with a limited runway for upside movement. Seasonal demand is beginning to improve—with spring build activity—but it remains incremental rather than robust, with buyers largely maintaining a hand-to-mouth approach rather than stepping in to build inventory positions. This cautious buying behavior is preventing the market from gaining strong upward traction, even as underlying fundamentals begin to firm.

At the same time, supply-side discipline is becoming more evident. Production curtailments in certain regions have helped realign supply more closely with current demand levels, removing some of the excess that weighed on pricing earlier in the year. This is not a tight market by traditional standards, but it is closer to balanced, which is contributing to a more stable pricing and reducing both upside and downside risk.

Logistical challenges are also playing a meaningful role. Transportation constraints, and higher freight costs are having an impact on the supply chain. These challenges are effectively supporting current pricing and extending lead times in certain regions or product categories.

Despite some seasonal favourable market conditions, the market lacks a clear catalyst—such as a surge in demand or restriction in supply —that would signal the start of a sustained rally. As a result, the market is expected to remain steady but range‑bound, pending stronger demand or tighter supply conditions.

FRAMING LUMBER

OSB

PLYWOOD

APRIL 2026 LUMBER MARKET REPORT HIGHLIGHTS:

• Western SPF: Sales were steady but unimpressive; mills generally held pricing, though buyers secured discounts on select lengths and tallies, particularly with prompt shipments.
• Market dynamics: Futures volatility drew attention but had little effect on cash markets; volumes were heavy, with wider-than-normal price spreads.
• Southern Pine: Priced fell sharply for a second week amid erratic trading, logistics disruptions, and wide quote dispersion; backlogged shipments distorted supply-demand signals, though baseline liquidity persisted.

APRIL 30, 2026 PANEL MARKET REPORT HIGHLIGHTS:

• Northern markets: Trading was steady with tight supplies and order files extending into June in some cases; quoted levels were higher, especially in the North Central region.
• Market sentiment: Many participants were optimistic that conditions were improving or already turning more favourable.
• Caution factors: Some early-available loads and concerns over developments in the Southwest tempered confidence; prices overall remained flat.

*All Pricing is in CAD