Paper/Forest Products: Wood wrap: Cost-push drivers support pricing despite uneven demand trends

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Paper/Forest Products: Wood wrap: Cost-push drivers support pricing despite uneven demand trends

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Paper/Forest Products

Wood wrap: Cost-push drivers support

pricing despite uneven demand trends

Industry Overview

Cost push + market trends in lumber 17 May 2026

Given inbound questions and upcoming investor events, we thought it would be helpful Equity

to discuss wood product pricing in light of the cost-push from energy, and whether United States

supply/demand is creating upward pricing, or not. Generally, we believe the upward Paper/Forest Products

momentum that exists in wood products is more cost or supply-chain driven, vs demand- George L. Staphos

based. Lumber is up $47/mbf or 11% since Feb 27 according to RISI (2/27 the last day Research Analyst

before the conflict) but demand has been stable overall with an uptick in recent weeks. BofAS+1 646 855 4495

On this point, FEA states demand has been up in the last four of five weeks including a george.l.staphos@bofa.com

6.5% increase the week of May 9. However, there remains a “measured cautious tone” in Bradley Barton, CFA

Research Analyst

most markets according to RISI with inventories being managed closely. BofAS

+1 646 556 2909

Location, location … bradley.barton2@bofa.com

Kyle Benvenuto

That said, different markets have seen different trends. Southern Yellow Pine (SYP) Research Analyst

rapidly increased and has now fallen over the last several weeks (-11% over 4 weeks) BofAS

+1 646 743 0046

while Green Douglas-fir (GDF) has had limited availability and higher pricing. Companies kyle.benvenuto@bofa.com

like Weyerhaeuser have noted cost hikes but have indicated an ability to offset with

pricing and supply-chain efforts. Trade publications from FEA and RL comment that