Prices have been easing across the board, settling into the lower end of last year’s range. With improving weather conditions in the forecast, we remain hopeful that market activity will pick up in the coming weeks. Inventory levels remain low across the distribution chain, with many relying on mills to serve as their warehouses. However, it’s important to keep in mind that we are still in the thick of winter, which traditionally slows demand.
The biggest story right now is the shift in leadership in Washington, D.C. Significant changes are already underway, bringing a renewed sense of optimism to the business community. The administration’s pro-economy stance is expected to foster a more business-friendly environment, with regulatory rollbacks that could benefit industries across the board. However, mortgage rates remain stubbornly high, tempering the demand for new homes despite strong underlying interest.
In the wood products industry, there is widespread belief that better markets are ahead in 2025—but the question remains: when? Current capacity in both the commodity lumber and panel markets continues to outpace demand, and pricing reflects that imbalance. This remains the case even with significant curtailments at lumber mills over the past six months. The hope is that supply and demand will find equilibrium this year, allowing mills to stabilize and move toward profitability.
It’s been a tough couple of years for producers, and the challenges have been felt across the industry. However, with new leadership in Washington and a focus on economic growth, there is a renewed sense of optimism for brighter days ahead. We are looking forward to what the rest of the year will bring.
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