After several years of unprecedented volatility in wood products markets, 2024 experienced a more stable, albeit depressed, environment for wood products demand and prices. …As President Trump enters his second term have the potential to break the wood products market out of this sleepy period weighed down by soft demand conditions. So, what does our crystal ball suggest in 2025? 

1. Interest rates will fall as the economy cools and policy uncertainty eases
2. Wood products demand will rebound as single-family housing starts growth remains positive and R&R reaccelerates. …US consumption of lumber, structural panels and nonstructural panels are all forecast to advance by 2-3%.
3. Duties on Canadian softwood lumber will double again, placing immense financial pressure on Canadian sawmills
4. Panel supply discipline and tight inventory levels will persist in 2025
5. Lumber price volatility will increase across wood products due to tightening conditions, duties and policy uncertainty