OCTOBER 2025 BUILDING MATERIAL MARKET REFLECTION

Building Material Market Overview

Mills continue to announce production curtailments in response to the 45% duty and tariff on U.S. exports. However, soft demand has kept supply ahead of demand, limiting the impact. Pricing is beginning to erode as mills and wholesalers adjust strategies to stimulate buying. Further curtailments are expected as mills work to rebalance supply with current demand.

Canada Housing Starts

Western SPF lumber:  Pricing trended upward overall for the month, though some downward pressure emerged at the end of October, signaling potential softening ahead.

OSB: The market remains balanced, with supply and demand in equilibrium. Pricing has held steady for the past 12 weeks, though the final Panel print of October showed a slight softening.

Plywood: Strong early-month sales drove overall price increases in October. Pricing held firm through the remainder of the month as mills leaned on extended order files pushing into November.

EWP: Supply conditions remain stable for both Joist and LVL with no reported disruptions or shortages. 

Building Materials: The supply chain continues to remain consistent with material availability and lead times, outside of the occasional logistical delay.

Looking Through the Crystal Ball

Market uncertainty persists as mills continue to announce production curtailments in response to the combined 45% duty and tariff on U.S. exports. Despite these supply-side adjustments, demand remains muted, and pricing is beginning to soften.

Further curtailments are expected as mills attempt to align production with current demand. Until demand improves, pricing will likely remain under pressure.

FRAMING LUMBER

OSB

OSB: The market remains balanced, with supply and demand in equilibrium. Pricing has held steady for the past 12 weeks, though the final Panel print of October showed a slight softening.

PLYWOOD

Plywood: Strong early-month sales drove overall price increases in October. Pricing held firm through the remainder of the month as mills leaned on extended order files pushing into November.

OCTOBER 31, 2025 LUMBER MARKET REPORT HIGHLIGHTS:

• • Framing lumber market remained soft as economic uncertainty and weak demand kept buyers cautious,
    despite a rate cut and seasonal supply adjustments.
  • Western S-P-F prices continued to slide as supply outpaced demand, with buyers hesitant to meet mill
    offers and futures losses further dampening market confidence.
  • Lumber Futures continued their steep decline, bringing down trader confidence as cash prices weakened,
    particularly for Canadian species.
  • Stud lumber sales remained slow across most regions as oversupply pressured prices downward. With
    generally weak demand, only a few trims and grades showed modest gains.

OCTOBER 31, 2025 PANEL MARKET REPORT HIGHLIGHTS:

• • OSB markets remained weak with prices mostly flat.
  • Seasonal factors and sufficient contract volumes kept buyers on the sidelines and mills struggled to
    move excess supply.
  • Western plywood demand was mostly steady with minimal price movement, as mills held firm on
    pricing.
  • Canadian plywood sales across Canada remained slow and steady, with prices holding firm despite
    weak December demand in the East and competitive U.S. supply pressures in the West.

*All Pricing is in CAD