April 2025 Lumber & Commodity Report

By Don Magruder

The RoMac Building Supply Wood Commodity Index (Index) for April 2025 decreased to $435.61 per thousand, or 9.3 percent down from March, as concerns from tariffs are given way to real concerns about a recession and housing downturn.  The lumber portion of the Index retreated from the tariff anxiety of last month, while the sheathing portion is in full retreat as March housing starts fell by 11.4 percent. The uncertainty and chaos around the tariffs are paralyzing the housing market, as no one has clarity on costs.  The home buyers are being spooked with continuous drumbeats of bad economic news.  

The wood portion of the Index dropped 9.3 percent to $492.83 per thousand with dimensional spruce retreating 9.8 to 18.6 percent depending on the length.  Studs were down on average 6 percent while 2x4 pine pricing increased 11.2 percent and 2x12 pine adding 1.2 to 4.8 percent.  Interestingly, compared to April 2025, the lumber portion of the Index is up 6.9 percent and most of this is probably attributed to tariffs.

The sheathing portion of the Index dropped to $392.87 per thousand, which is down 9.2 percent from last month.  OSB gave back, on average, 11 percent, while OSB retreated to $30 per thousand, or about 8.5 percent.  Here is the canary in the coal mine as it relates to the housing market- since April 2025, last year, the sheathing portion of our Index is down 37.5 percent.  Don’t forget we are in the spring selling season with improved weather, and these markets remain stuck in ranges accustomed to the dead of winter. 

Overall, the Wood Commodity Index since last April is down 21.8 percent. This truly reinforces the concern many have that the housing demand equation is not what it should be nationally.

What should builders expect in the near term regarding pricing and supply?  Honestly, who knows? The wood tariff issues have not been resolved, plus later in the year, countervailing Canadian softwood duties are to increase dramatically, and you would think prices should increase, but the housing demand equation must improve and do so quickly.  Right now, manufacturers and suppliers seem to be more concerned about housing demand and less about pricing.  

Builders should be less worried about the lumber markets now and more concerned about the small items within the supply chain, which are used in the components of housing.  Canceled freighters from China, which are supposed to carry a lot of parts and pieces that are used in home building, could be the next emerging issue later this summer. 

This bumpy ride is far from over, and builders need to check their seatbelts- it could get bumpier. 

The RoMac Wood Commodity Index is a weighted lumber and sheathing composite based on usage in Central Florida. By using wholesale pricing, the Index is a good indicator of the pricing direction for the next 30 days.

Don Magruder is the Chief Executive Officer of RoMac Building Supply in Central Florida, he is a former president of the Southeast Mississippi Home Builders Association and a past Associate Vice President of the Home Builders Association of Lake County.

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