JULY 2026 BUILDING MATERIAL MARKET REFLECTION

Building Material Market Overview

July building materials markets remained generally positive, led by lumber, where tight supply and strong mill order files continued to support higher pricing. OSB stayed balanced with steady demand and stable pricing, while plywood started the month strong before buyers became more cautious amid uncertainty around fall demand. Overall, disciplined inventories and restrained purchasing kept market fundamentals stable across all major product categories.

Canada Housing Starts

Western SPF Lumber

• Lumber led the market in July, supported by tight supply and strong mill order files.
• Supply constraints and transportation challenges kept upward pressure on pricing throughout the month.
• Steady replenishment buying allowed mills to maintain firm pricing and push through modest increases.

OSB

• OSB markets remained stable through July, supported by balanced supply and steady mill order files.
• Buyers stayed focused on immediate needs, relying on contracts and existing inventory rather than building positions.
• Pricing held mostly steady, with flooring products outperforming thinner panels and demand remaining moderate.

Plywood

• Plywood started July strong, with mills raising prices and extending order files as market momentum carried forward.
• Buying activity became more cautious later in the month, as customers completed inventory replenishment and waited for clearer fall demand signals.
• Market fundamentals remained balanced, with controlled mill inventories and generally stable pricing despite softer sentiment.

Engineered Wood Products (EWP)

• EWP suppliers continue to digest last months price increases, transportation, and fuel costs continued to pressure the market.
• Lead times are beginning to normalize as manufacturers work through strong mill order files.
• Steady demand and production backlogs tightened near-term supply, supporting firm market conditions.

Building Materials

• Transportation constraints continue to challenge the supply chain, resulting in shipment delays and extended lead times across several product categories.
• Higher fuel costs, freight surcharges, and inflationary pressures remain key cost drivers, while ongoing geopolitical uncertainty adds further volatility to transportation and logistics expenses.
• These combined supply and cost pressures are helping maintain longer lead times and supporting firm pricing across most building material categories.

Looking Through the Crystal Ball

As we head into August, the building materials market is still on solid ground. Inventories remain balanced, mills generally have respectable order files, and supply constraints continue to support pricing across most product categories. While buyers remain cautious and focused on immediate needs, demand has been consistent enough to keep markets moving in a positive direction.

Lumber continues to be the market leader. Tight supply, transportation challenges, and limited availability on certain items should keep prices well supported. If supply remains constrained and fall demand starts to pick up, there is still room for additional gains.

OSB looks steady heading into the month. Demand remains consistent, mills are comfortable with their order files, and pricing appears relatively stable. Barring a meaningful increase in demand, however, significant price movement is unlikely.

Plywood remains balanced but a little more cautious. Inventories are under control and market fundamentals are healthy, but many buyers are still waiting for a clearer picture of fall construction activity before making larger commitments.

Key Risks to Watch

• Higher interest rates and economic uncertainty continue to weigh on construction activity and buyer confidence.
• Transportation issues, fuel costs, and freight inflation could create additional pressure on lead times and pricing.
• Wildfires, weather events, and other supply chain disruptions could tighten availability and increase volatility.
• A slower-than-expected fall building season could soften demand, particularly in panel markets.
• Ongoing geopolitical tensions and inflationary pressures may continue to impact costs across the supply chain.

Outlook

For now, the market feels stable and reasonably healthy. Lumber remains the strongest segment, while OSB and plywood are holding steady as buyers wait for stronger signals from the fall building season. The big question for August is whether seasonal demand can build enough momentum to keep pricing firm and carry the market’s positive tone into September

FRAMING LUMBER

OSB

PLYWOOD

JULY 2026 LUMBER MARKET REPORT HIGHLIGHTS:

Market sentiment remained cautious as a mill closure announcement, rising U.S. mortgage rates, and weaker futures activity kept many buyers on the sidelines, though tight supply and low inventories continued to support modest price increases.

Dimension lumber prices moved higher, led by strong demand for 2×6 and wider widths, with certain 2×4 lengths also difficult to source. Random tally prices increased by approximately $4/MBF, while other widths gained $5-10/MBF.