After a strong start to the year, western plywood markets have slowed over the past few weeks. Persistent harsh winter weather across the country, coupled with market uncertainty surrounding tariffs and interest rates, has kept buyers cautious. Most customers are sticking to needs-based purchases, waiting to see how conditions unfold before making larger commitments. Other commodity sectors have followed a similar pattern, settling into a slower pace.
Southern yellow pine (SYP) plywood remains the firmest and most stable segment of the panel market. Pine plywood mills are currently quoting order files into early-to-mid March (3/3 to 3/17), while Canadian plywood mills are extending their order files into late March. The extended order files have kept some buyers on the sidelines, but fill-in purchases are being made at spot market prices, which are at or above replacement costs.
Industry sentiment remains cautiously optimistic for 2025, largely due to the pro-business stance of the new administration. However, the shifting economic landscape and regulatory changes have created significant uncertainty. We’re witnessing a level of upheaval that our industry hasn’t experienced before, making it difficult to predict how lumber and plywood markets will be impacted.
While many in the industry anticipate an improvement over last year, the timing and scale of that recovery remain uncertain. One thing is clear: our industry needs better pricing and stronger returns on plywood products. For mills to succeed, we need a regulatory environment that supports greater access to fiber and makes raw material more affordable, particularly in the Pacific Northwest.
For the past two years, commodity plywood producers have been treading water, navigating difficult pricing conditions and market volatility. It hasn’t been an easy road, but we remain optimistic about the year ahead.
2025, bring it on!
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