As the year winds down, the commodity plywood market has slowed, a typical seasonal shift as winter weather and the holidays take center stage. It’s no surprise—this is the time of year when customers aim to keep inventories lean, taking a pause before reassessing demand after the New Year.
Winter weather often plays the deciding hand in shaping buying patterns and consumption levels. Over the past several weeks, most commodity lumber and panel markets have cooled off following a brief fall rally. Prices have softened across the board, with commodity plywood underperforming compared to other sectors.
What’s Next for 2025?
While 2024 has been a challenging year for many in the commodity lumber and plywood industry, optimism is beginning to emerge for 2025. Traders and customers alike are hopeful about the months ahead, though much depends on how expectations unfold in the first half of the year.
The sentiment is positive—perhaps more so than it has been in quite some time. Some shelved projects from the past 12 to 18 months are finally coming back to the table for reconsideration, signaling a shift in momentum. This renewed interest is largely tied to the possibility of easing interest rates and a changing regulatory landscape, both of which could create more favorable conditions for business owners across the industry.
A Turning Point
It’s no secret that 2024 presented significant hurdles for commodity producers. However, with the country on the brink of substantial change, there’s reason to believe the tides may turn in favor of the forest products manufacturing sector. A reined-in regulatory environment and improving business sentiment are steps in the right direction.
As we close the chapter on a difficult year, we’re looking forward to what lies ahead. Here’s to a brighter 2025—one filled with opportunity, growth, and progress for the industry and our nation.
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