March 2025 lumber report: Tariff confusion and rising prices
March waned with the usual seasonal increase in lumber buying and construction activity. At the same time, transportation issues loomed at a normal time of year. Lumber industry players reported shortages of trucks, as well as long delays at hubs and at border crossings. Players voiced their frustration with the ongoing uncertainty about tariffs, if that would apply to lumber, saying that the final announcement could not come soon enough.
Prices of some solid wood commodities strengthened slightly as cautious operators could no longer wait to order the lumber items they needed in the immediate future. Those who could wait until the beginning to April to find out about tariffs did so. This, even as suppliers warned that — should there be no trade barrier — everyone would order at the same time causing a supply shortage and higher prices. As it is still quite early in the usual spring building season, many chose to take their chances and wait for proper clarity on the important trade front.
In the week ending March 28, 2025 the price of benchmark softwood lumber item Western Spruce-Pine-Fir 2x4 #2&Btr KD (RL) was $545 mfbm, which was up +$10, or +2%, from the previous week when it was $535, according to the latest data from Madison’s Lumber Reporter.
That week’s price was up +$63, or +13%, from one month ago when it was $483.
Compared to the same week last year, when it was $452 mfbm, that week’s price was up +$93, or +21%. Compared to two years ago when it was $380, that week’s price was up +$165, or +40%.
Key lumber prices and market conditions takeaways from March 2025:
- Western S-P-F retail customers were particularly active since they’d let their inventories run down to bare pavement.
- Transportation continued to be a challenge for players on both sides of the border.
- As the final deadline for tariff announcement approached, the low sales volumes of Canadian Western S-P-F were relegated almost entirely to just-in-time LTL orders through the distribution network.
- Significant lumber price spreads were evident, depending on the source and destination.
- Improving production volumes nudged supply closer in line with sagging demand.
- Secondary suppliers of Eastern S-P-F with stateside inventories were busy as customers in key U.S. construction markets began to load up on their spring needs.
- The pace of inquiry for Southern Yellow Pine appeared to be improving steadily, even as takeaway was slightly slowing.
- Spring-time logistical snarls at the border came into focus, with backlogged shipments and overworked customs agents.
The Madison’s Lumber Prices Index for the week ending March 28, 2025 is: $567 mfbm. This is up +1%, or +$3, from the previous week when it was $564, and is down -2%, or -$14, from one month ago when it was $581.
Single-Family housing starts hit a 12-month high in February 2025. The number of U.S. housing starts and permits in February reached the long-term threshold of 1.5 million new homes needed annually to stabilize home prices.
The inventory of single-family housing under construction stayed flat at a rate of 640,000 units, still low compared to levels in 2021.
February housing completions were 1.59 million units, down -6% compared to the same month in 2024 when it was 1.70 million units. The completions rate for single-family housing increased by more than +7% from January to 1.07 million units in February.
Established in 1952, Madison’s Lumber Prices is a premiere source for North American softwood lumber news, prices, industry insight and industry contacts. The weekly Madison’s Lumber Reporter publishes current Canadian and U.S. construction framing dimension lumber and panel wholesaler pricing information 50 weeks a year and provides access to historical pricing as well.
Kéta Kosman is editor, owner and publisher of Madison's Lumber Report. She covers breaking news for the softwood lumber market.
