By Don Magruder
The RoMac Building Supply Wood Commodity Index (Index) for March 2025 increased to
$480.08 per thousand or 6.0 percent from February as mills and suppliers wrestle with the
continuous on-again and off-again tariff policies of the United States. Uncertainty has
swept the wood products supply chain regarding pricing and supply, and now, there is
uncertainty about the United States housing market and the overall economy. Canadian mills
are desperately searching the world for more reliable trading partners and with 30 percent
of the lumber used sourced from Canada this could have real issues for both sides.
No one truly knows the outcome of this current upheaval and with looming reciprocal tariffs
on the rest of the world to take place on April 2 and there appears to be little relief in sight for
this uncertainty. Project owners and builders with current projects and those on the
planning board appears to be slow playing builds trying to find clarity and a level of pricing
that is sustainable.
The lumber portion of the Index rose 14.0 percent to $543.46 per thousand with spruce
dimensional increasing across the board. Studs were up 10.1 to 18.2 percent while
dimensional spruce depending on length was up 7.2 to 26.9 percent. The bell weather
2x4-16 #2 SPF was up $110 per thousand or 20.8 percent in just one month. Narrow pine
increased 5.0 percent while wider width 2x12 pine was flat to slightly down. The demand
equation continues to remain muted, and one concern is that the spring home selling
season is muted at best. In short, these price increases appear to be driven by tariffs and
not demand.
The sheathing portion of the Index declined .6 percent to $432.74 as OSB producers could
not prop up pricing in the face of less-than-enthusiast demand. OSB lost $15 per thousand
or about 4.0 percent in the last month, but CDX pine plywood pricing increased similarly to
offset the declines. The OSB sheathing market may be the most indicative sign of the
overall housing market demand.
The lumber portion of the Index compared to last March is up 13.8 percent from $477.61
per thousand while the sheathing portion of the Index is down 19.0% from $534.14. In my
view, the lumber portion is being driven by tariff concerns and cost while sheathing is
reacting to lackluster demand. It is not normal in a spring home-building season that
lumber and sheathing markets move in opposite directions by so much. The overall Wood
Commodity Index is up 6.2 percent on lumber increases.
Builders should have price escalation clauses in their contracts as well as Force Majeure
clauses for materials impacted by tariffs. Most tariff costs on steel, aluminum, and other
products have not hit the markets, and builders should be aware that mills and suppliers have sent out an inordinate number of price increase letters effective the first of April.
Right now, builders, suppliers, and mills need a calming down of the tariff chaos, and all
desperately need the spring home-buying season to get into full swing.
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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