Lumber market outlook: Five key trends shaping the North American wood products industry in 2025

After a period of extreme volatility in the wood products market, 2024 was marked by subdued demand and weaker pricing, particularly in the softwood lumber sector. Over the past two years, capacity reductions have led to mill closures exceeding 5 billion board feet (BBF), signaling the challenges faced by the industry. Meanwhile, panel mills have maintained tighter supply discipline, allowing them to sustain prices above pre-pandemic levels. However, as 2025 unfolds, shifting economic conditions, evolving trade policies, and supply-side constraints suggest a more dynamic year ahead. Below are five critical factors expected to influence the wood products ...