Lumber price forecast models from several research houses

Lumber price forecast models from several research houses converge around $545 average pricing for Q3 Click to email a link to a friend (Opens in new window) Given this level of concentration, we anticipate that the strategy of maintaining tight inventory levels will continue into 2025. In 2024, the market saw two new mills begin production: the West Fraser Allendale mill in South Carolina reopened, and Martco’s expanded mill in Corrigan, Texas, which had been delayed at the end of 2023, became operational. However, we do not expect any new mills to open in 2025, despite a considerable number of greenfield facilities in development. Meanwhile, plywood remains a niche product in the wood products market, and offshore trade will continue to be the marginal supplier, as no new mills are expected in the coming year. Traders suggest keeping an eye on urban development approvals, which can rapidly boost regional demand for framing lumber.