The plywood commodity market has remained mostly unchanged over the past several weeks, though our recent sales volume has shown improvement. That momentum is encouraging as we head into the Fall months, which are typically among the strongest shipping periods of the year for panels. We hope this season follows that pattern.
That said, the market still feels like a grinder. There is a bit more positivity seeping into the marketplace, however, and reasons for cautious optimism. The recent interest rate cut was anticipated and welcomed across the industry. It’s a start. If rates continue to trend lower, as they appear positioned to do, it will be a major boost for the housing and building sectors—and by extension, for the multitude of businesses that supply into and rely on construction activity.
For the broader economy, the question seems to be when—not if—we start to see the positive effects of favorable monetary policy, tariff clarity, and reduced borrowing costs. Add to that the significant infusion of capital and investments flowing into targeted manufacturing across the U.S., and the years ahead could look very different. It’s hard not to remain optimistic in the long term. We continue to hear that a sizable number of jobs and projects are poised to move off the back burner in the coming months.
In the meantime, commodity plywood inventories in the field remain very lean. For the most part, mills are still being used as a warehouse for customers. Prices remain stuck at the low end of recent ranges, which means producers in the West are selling most items below cost. That’s no easy position for any manufacturer.
We remain hopeful that the months ahead will bring some lift to the market. Every producer in this industry could use it.
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