MARCH 2026 BUILDING MATERIAL MARKET REFLECTION

Building Material Market Overview

Firm demand and constrained supply supported higher pricing across dimensional lumber, with transportation delays prompting insurance buying. #2&Btr random dimension products recorded broad‑based gains on strong mill order files and limited availability, led by continued strength in 2×4 studs.

In contrast, OSB pricing weakened further in Western Canada amid ample supply and discounting, while North Central mills maintained greater pricing discipline despite below‑market Western Canadian shipments into the region.

Canadian plywood markets remained soft as limited buying kept order files flat and prices under pressure. Rising fuel costs are adding to cost pressures, with surcharges beginning to work through the supply chain.

Canada Housing Starts

Western SPF Lumber

• Firm demand and constrained supply supported higher mill pricing, with transportation delays prompting selective insurance buying.
• #2&Btr random dimension products recorded broad‑based gains on solid order files and limited availability.
• 2×4 studs continued to lead the market, showing the strongest performance throughout March.

Oriented Strand Board (OSB)

• OSB pricing weakened further in Western Canada amid ample truckload availability and volume‑ and destination‑based discounting.
• Discounted Western Canadian shipments into the region persisted.
• Ongoing regional supply imbalances continue to weigh on near‑term panel pricing despite tighter mill control elsewhere.

Plywood

• Canadian plywood markets remained soft, with limited buying keeping order files flat and pricing under pressure
• Rising fuel costs are increasing cost pressure, with transportation surcharges beginning to flow through the supply chain

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 persist across the supply chain due to transportation constraints and weather‑related disruptions
• Fuel surcharges and broader cost increases are now filtering through all product categories, driven by heightened geopolitical tensions with the conflict in the Middle East.
• These pressures are extending lead times and adding upward momentum to pricing across all product lines

Looking Through the Crystal Ball

April Market Forecast

As the market moves into April, cautious optimism is building that seasonal momentum and a psychological shift into spring buying will begin to lift demand. Early indicators suggest modest improvement, though the recovery remains uneven and highly product specific.

Strength continues to be led by Southern Yellow Pine (SYP), where mills are reporting solid sales and firmer pricing. Other species continue to lag, reinforcing the view that the North American lumber market remains disjointed and that recent gains may reflect isolated regional or species-specific strength rather than broad-based end-use demand. Sustained demand pull-through will be critical to supporting wider price appreciation.

On the supply side, tightening mill inventories are improving pricing confidence, allowing for firmer quoting and selective price increases. SPF markets in Eastern and Western Canada appear to be stabilizing, while competition for orders remains active, with selective discounting persisting as distributors work through ample inventories and manage shipping-window constraints.

Macro economic risks remain elevated. Escalating geopolitical tensions in the Middle East, rising energy and fuel costs, and renewed inflation concerns are increasingly viewed as longer-term headwinds rather than short-term disruptions. These external pressures are expected to influence costs, pricing discipline, and buyer behavior through April and into May.

Overall, market conditions are firmer than earlier in the year, but meaningful upside will depend on demand broadening beyond SYP and the industry’s ability to navigate growing macroeconomic and geopolitical uncertainty.

FRAMING LUMBER

OSB

PLYWOOD

MARCH, 2026 LUMBER MARKET REPORT HIGHLIGHTS:

MARCH 27, 2026 PANEL MARKET REPORT HIGHLIGHTS:

*All Pricing is in CAD