FEBRUARY 2026 BUILDING MATERIAL MARKET REFLECTION

Building Material Market Overview

The month was defined by stability rather than momentum. Buyers remained cautious, prioritizing near‑term coverage over a long inventory position. Mills continued to show a disciplined approach, holding prices and falling back on order files. Logistical challenges are pushing deliveries into the 2–3-week range on truckload volumes

Canada Housing Starts

Western SPF Lumber

• 2×4 & 2×6 was relatively flat through February, due partly to weather disruptions.
• Mills held pricing, falling back on order files.
• Order files now stretching into mid – March, with some select items sooner.

Oriented Strand Board (OSB)

• Prices rose at a slow, steady pace the first half of the month then plateaued.
• Supply remains tight, especially outside contract volumes.
• Mills quoting into week first week of April delivery.

Plywood

• Prices were static for February
• Select plywood seeing some production restraints.
• Mill order files stretching into Mid March, forcing buyers to look at spring demand

Engineered Wood Products (EWP)

• Facing downward price pressure as producers are looking to gaining market share.
• Supply remains stable for both Joist and LVL. No disruptions or shortages reported.

Building Materials

• Logistical delays due to winter weather + truck shortages.
• Entering Q2 2026 we continue to see minor price increases on select items.
• Steel‑related products up to +25%, driven by Canadian tariffs on Chinese imports.

Looking Through the Crystal Ball

March Market Forecast

As winter transitions into spring, improving weather conditions are expected to drive a natural increase in market activity. While near‑term conditions continue to feel soft, the key variable for March will be how quickly demand rebounds relative to available supply. Market sentiment remains divided, creating the potential for increased volatility as seasonal momentum builds.

Supply uncertainty remains unresolved even as demand shows early signs of improvement. On the bullish side, some market participants expect a developing undersupply that could spark a sharp upward price correction as activity accelerates, while others take a bearish view, anticipating a slower, more gradual demand recovery that allows supply to keep pace and limits near-term price pressure. In the meantime, mills are holding firm to protect order files and reinforce a perceived price floor, while buyers continue to operate largely hand-to-mouth—covering only near-term needs and using available options to push back on pricing. Even with today’s softness, sentiment could shift quickly once demand returns.

Trade & Tariff Environment

Effective February 24, 2026, the U.S. implemented a temporary 10% global import tariff under Section 122, in place through July 24, 2026; however, Canadian softwood lumber and CUSMA-compliant wood products remain exempt. Steel products covered under Section 232 are unchanged, while non‑CUSMA inputs could face added risk if trade measures expand later in 2026. Overall, near‑term trade impacts appear limited heading into spring, which is the key March takeaway.

While the market currently appears subdued, seasonal forces and unresolved supply questions suggest heightened sensitivity to demand recovery. Buyers should remain alert, as conditions could shift rapidly from price resistance to upward momentum once activity strengthens.

FRAMING LUMBER

OSB

PLYWOOD

FEBRUARY 27, 2026 LUMBER MARKET REPORT HIGHLIGHTS:

FEBRUARY 27, 2026 PANEL MARKET REPORT HIGHLIGHTS:

*All Pricing is in CAD