It’s been a slow stretch for commodity plywood over the past month. While we’ve seen brief spurts of activity, overall demand has remained sluggish. Most buyers are still keeping inventories lean, likely influenced by ongoing uncertainty around current and future tariff impacts.
As expected, March trading has been measured. That said, last week brought some encouraging signs of improvement. Wet, wintry conditions have continued to impact large portions of the country, slowing down logistics and buyer activity. With spring officially underway, drier weather should improve shipping and yard movement, giving buyers more confidence to step off the sidelines.
In the West, commodity plywood prices are sitting at the lower end of the 12-month range. Mills are holding firm where they can, but buying remains uneven. When compared to OSB and SYP plywood pricing, western plywood still offers some of the best value in the panel market. In many regions, 15/32 CD 4-ply from the West is priced significantly lower than SYP alternatives.
Still, the mood is a mix of optimism and caution. Mortgage rates have ticked down slightly, but not enough to spark a meaningful shift in housing demand. A further drop of 25 to 50 basis points could go a long way toward moving hesitant homebuyers back into the market. The Fed’s decision to hold rates steady this month reflects the broader wait-and-see sentiment we’re hearing across the field.
Underlying demand remains strong, and we’re heading into the building season. With a new administration in place and multiple policy changes underway, it’s clear we’re in a period of transition. How those changes impact our industry is yet to be seen.
Here in the West, plywood producers need stronger prices to stay competitive. So far this year, western plywood pricing has lagged behind other segments. We’re hoping for a market lift this spring—it’s needed. Time will tell.
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