Canada's February industrial products and raw materials price index released: the impact of wood price fluctuations on Chinese importers

Canada's industrial products and raw materials price index in February showed that lumber prices fell by 1.2% month-on-month, of which softwood lumber prices fell by 3.4%. In 2024, Canadian lumber prices rose by 2.2% throughout the year, with softwood lumber rising by 6.2%, mainly due to tight supply caused by sawmill production cuts. Chinese importers need to pay attention to the impact of price fluctuations on procurement costs.
Close-up of stock market chart showing trends and data on a digital screen.

Canada February industrial products and raw materials price index released

March 20, 2025Statistics Canada(StatCan) released the Industrial Products and Raw Materials Price Index (IPPI and RMPI) for February. The data showed that the IPPI rose by 0.4% month-on-month, increasing for the fifth consecutive month. However, the price of lumber and other wood products fell by 1.2% month-on-month, of which the price of softwood lumber fell by 3.4%, mainly due to the slowdown in purchasing activities caused by the cold weather.

Year-on-year, IPPI rose by 4.9%, while RMPI rose by 9.3%. Excluding energy products, RMPI rose by 16.2%.

LumberFlow Expert Interpretation

In 2024, Canadian lumber prices rose by 2.2% after consecutive declines in 2022 and 2023, with softwood lumber prices rising by 6.2%. This increase is mainly attributed to the reduction in production and closure of Canadian sawmills, resulting in reduced supply. For Chinese importers, fluctuations in Canadian lumber prices will directly affect import costs. The rise in softwood lumber prices in 2024 may increase procurement costs for Chinese importers, especially in the second half of the year.

In addition, the lumber price in 2024 is 26.6% higher than in 2019, indicating that the long-term price trend is still high. Chinese importers need to pay close attention to changes in Canadian lumber supply, especially the impact of sawmill capacity adjustments on major products such as SPF (spruce-pine-fir).

Share to:

文章二维码

Scan the QR code on WeChat to share this article

More Articles

Close-up Photo of Monitor

Potential impact of the expected adjustment of the US housing market on the global wood supply chain and strategic opportunities for Chinese importers

Fannie Mae's latest economic outlook reveals that U.S. single-family home sales are expected to reach 4.92 million in 2025, and mortgage rates are expected to drop to 6.1%. GDP growth is forecast to be 0.7%. What does this report reveal about global lumber demand and prices? How should Chinese importers adjust their strategies? LumberFlow provides you with an in-depth analysis.

A business professional analyzing stock charts on a laptop and smartphone at the office.

In-depth analysis: US new home sales surged by 10.9%, chain reaction on China's wood supply chain and price index outlook

The annualized sales rate of new single-family homes in the United States in April 2025 reached 743,000 units, a surge of 10.9% from the previous month, indicating strong demand for domestic wood. LumberFlow experts pointed out that this move may lead to a tightening of the supply of US wood exports to China (potential reduction of 5-10% is expected), and the pressure of FOB price increases will be transmitted within 2-3 months. It is recommended that Chinese importers optimize their procurement portfolio, consider increasing supply from Canada, Europe and other places, and adopt strategic inventory management and forward contracts to lock in prices, while paying close attention to market intelligence to respond to changes.

Close-up of stock market chart showing trends and data on a digital screen.

Canadian lumber price index plunges: in-depth analysis of April market dynamics and strategic implications for Chinese importers

The latest data from Statistics Canada shows that both the industrial product and raw material price indexes fell in April. Among them, the price of lumber and other wood products fell by 4.4% month-on-month, and the price of cork plummeted by 11.1%, the largest monthly drop since June 2022. Potential tariff risks have caused buyers to postpone purchases, creating downward pressure on prices.

The story of North American forest products giants (Part 1): Weyerhaeuser, West Fraser, and Café-Rodriguez’s century-old foundation and the Chinese market

North America has one of the most extensive and high-quality forest resources in the world. On this land, a number of world-class forest product companies were born. They have gradually developed from the initial logging camps into multinational giants with businesses all over the world. Their growth history is not only a magnificent business epic, but also a struggle history of constant game with natural resources, market changes, and technological innovation. As the opening of a series of articles, this article will focus on three industry leaders with a long history and far-reaching influence: Weyerhaeuser, West Fraser, and Canfor.

Subscribe to our newsletter

en_USEnglish
zh_CN简体中文 en_USEnglish
Scroll to Top