North America softwood lumber market update: Q2 2026

SEATTLE (Scrap Monster): As forest industry folks returned to their desks in June following the respective Canadian and U.S. May long weekends, sentiment remained cautious. The ongoing practice of hand-to-mouth business continued. Customers saw no reason to stock lumber inventory, placing orders for only the wood they knew they had immediate needs for. In view of that, suppliers kept manufacturing volumes lower to stay in line with this soft demand.

After a sizeable run-up earlier this year, Southern Yellow Pine East Side 2×4 price corrected all the way back down to where it had been in January and February. For its part, benchmark lumber item Western Spruce-Pine-Fir 2×4 price steadily increased by nominal amounts, then stayed flat for two solid months.

For the week ending June 5, 2026 the price of Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) was US$490 mfbm, which was flat from the previous week, said weekly forest products industry price guide newsletter Madison’s Lumber Reporter. That week’s price was flat from one month ago when it was $490.

Compared to the same week last year, when it was US$456 mfbm, that week’s price was up +$34, or +7%.  Compared to two years ago when it was $383, that week’s price was up +$107, or +28%.

Key lumber prices and market conditions takeaways, June 2026:

• Traders of Western-SPF in the U.S. reported a tenuous upward trend, supported by positive movement in lumber futures.

• Sawmill order files were into the latter half of June, making discounts increasingly difficult to find.

• Buyers tried to secure their mid-summer needs at the previous week’s prices, ut mills held fast to their established lists.

• Customers of Eastern-SPF carrying short positions who had been waiting for a pullback in prices found themselves caught.

• The ESPF supply pipeline was demonstrably leaner than it has been in the past two years at this time.

• Southern Yellow Pine asking prices pushed as high as $10 to $15 above print as producers tried to pass on rising freight costs.

• Retail customers in the US northeast relied on just-in-time purchasing as external factors made every transaction more challenging.

The Madison’s Lumber Prices Index for the week ending June 5, 2026 is: US$521 mfbm. This was flat from the previous week, and was up 0%, or +$1, from one month ago when it was US$522.

The different strategies between the various regions of North America this year is very interesting; the northern sawmills continued to keep production volumes down and lumber prices mostly flat, while the south attempted to capture enthusiasm for the usual spring buy — which this year did not materialize — by drastically increasing prices.

For the latter, customers refused to accept those price spikes, responded with strict counter-offers, and kept to purchasing for immediate needs only. So those suppliers had to reduce prices back down to acceptable levels. Historically lumber sales slow down in June, but the annual seasonal trend has not been usual for several years so might not provide any insight during this time of uncertainty.

In addition to the usual seasonal issues in transportation, specifically in sourcing trucks and rail cars, was sharply increasing fuel surcharges. Freight rates have ballooned significantly in the past couple of months, putting even greater pressure on costs for sawmills and other forest operators.

In total, there was general apathy and lack of urgency among buyers which is unusual for this time of year.

Courtesy: www.canadianbiomassmagazine.ca