Market Update: Commodity Plywood Market Holds Steady Amid Economic Uncertainty

The commodity plywood market continues to be a slow and steady experience. Prices saw some firming in May, but have since leveled out, with modest discounting now showing up in the market. The core conditions remain unchanged. Producers like us continue to battle high costs, with most items still selling at or below our cost across the board.

Demand has remained subdued so far this summer. Most customers are buying only what they need, relying on mills like ours to function as just-in-time warehouses. That trend is especially apparent in the truck markets, where jobsite deliveries are becoming more common. Many yards are leaning on producers to deliver directly to the jobsite in bulk, eliminating the need to bring wood through their own yards and lowering their cost basis in the process.

Nearly all commodity lumber and panel products are experiencing the same dynamic—narrow trading ranges and scrappy, day-to-day sales.

Broader economic factors continue to shape both industry sentiment and national momentum. High interest rates remain a major hurdle, keeping many new projects on pause. Following this week’s FOMC meeting, the Fed left rates unchanged and indicated that any cuts may not happen until later this year. With just one more summer meeting in July, the mid-September session now looks like the earliest possible opportunity for a rate cut.

On the global front, the conflicts in Israel/Iran and Ukraine/Russia continue to be serious and destabilizing. Layer in the ongoing uncertainty around tariffs and trade policy, and it’s no surprise the overall business climate feels stalled. Projects and decisions that had started to gain traction earlier this year now appear to be back on hold—waiting for more certainty and more favorable conditions.

Still, we remain hopeful. If even a few of these variables start to shift in a positive direction, sentiment could change quickly. We’ve seen it happen before. As always, time will tell.