Ontario Trends May 2025 – Sawmills In Ontario Focused On Hard And Soft Maple, Red Oak

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Ontario Trends May 2025 – Sawmills In Ontario Focused On Hard And Soft Maple, Red Oak

The spring period was challenging for those in the hardwood sector, with warmer weather conditions coming quickly and the thaw leading to the usual road restrictions for this time of year. There were less logs made available by logging contractors, and for sawmills to operate at full capacity to respond to their customers’ needs for certain species. In the hardwood sector, it was noted that sawmill production had increased in February. Green lumber supplies were sufficient for certain grades and thicknesses but not for others. Kiln-dried inventories were also identified as thin during this time.

Ash supplies are still not abundant and several contacts stated they would like to add to their on hand supplies. Competition due to limited output is pushing prices higher. Kiln-dried inventories are thin as well. Aspen sales are also weak, with yards having limited production. Kiln-dried inventories have declined, with salable items now being in short supply.

Many mills continue to limit log receipts of Basswood, as this is not currently a high selling item. Businesses have expressed concern about supplies being too low due to spring thaw. There is a bit more energy in green markets which is pushing prices up.

Green Hard Maple was moving well to concentration yards and to secondary manufacturers. Most buyers purchased for replacement needs, and the volume required to support projected sales and sustain finished goods production schedules was sufficient to absorb developing supplies. Kiln-dried markets are varied; contacts indicate business has slowed, while others cannot supply customers’ demands, causing prices to firm.

Contacts report markets for kiln-dried FAS Soft Maple are better than for other grades. Kiln-dried supplies are low for No. 1 Common and Better, but sufficient quantities of green production are backfilling kiln-dried supplies. Green Soft Maple output has improved. Buyers were looking to build their on hand supplies ahead of the spring thaw.

As winter ended, mills were focused on processing winter harvested whitewoods, particularly Hard and Soft Maple. However, it was noted sufficient quantities of green Red Oak were entering the market, with demand absorbing developing supplies. Kiln-dried business was holding up well, prices were trending upward.

As we finish winter, Birch production is more aligned to demand, as opposed to summer and fall periods where it was more elevated relative to buyers’ needs. Kiln-dried Birch markets have not improved, even though interest in Soft Maple has grown. Some suppliers were surprised that Soft Maple shortages did not drive better business for Birch.

Exports to Europe are slow, while other markets appear to be holding up well. White Oak was one of the best sellers. Demand for kiln-dried Nos. 1 and 2A Common were good, prices steady.

At the time of this writing, the new Liberal Party of Canada leader and Prime Minister (PM) of Canada, Mark Carney (sworn in on March 14), triggered the election process on March 23, for a parliamentary vote on April 28.

PM Carney will address the trade war and sovereignty threats by the U.S. President. Trump’s tariff imposition on many countries, among other plans, have left people disoriented in the world, leaving them to wonder what he will do next. This has not only affected people but the world economy as well, as stock markets dropped at his announcement. This also caused concerns and issues in his own country.

Ontario Premier Doug Ford met March 3 with the nation’s provincial chambers of commerce who presented an Agenda for Economic Growth and Stability, as Canada enters a trade war provoked by the United States. The Chambers’ recommendations to Canada’s premiers are to drive economic growth, strengthen domestic trade, and elevate Canada’s global competitiveness.

“This is a defining moment for Canada’s economy,” said Daniel Tisch, president and CEO of the Ontario Chamber of Commerce, who brought the group together.

“That’s why business leaders from across the country have come together to put forward a bold, united plan to enhance national competitiveness — and national resilience. We call on Canada’s premiers to dismantle internal trade barriers, fast-track energy infrastructure, and strengthen domestic supply chains — to benefit businesses, workers and communities.”

Sawmills

Key priorities include: removing barriers to interprovincial trade and labor mobility: to enable mutual recognition agreements for the seamless movement of goods, services and talent; making an immediate, unified and unambiguous commitment to a National Energy Corridor: sign a MOU (memorandum of understanding) to facilitate the movement of oil, natural gas, electricity, hydrogen and other resources across Canada, from east to west and to our northern ports, opening up both internal and new export markets, and; bolstering domestic procurement and supply chains: align provincial public procurement policies to support Canadian content. This means increasing the weighting of local economic impact in procurement decisions, using trade agreement flexibilities to support domestic suppliers, and aligning procurement policies with key sectors such as manufacturing, agri-food and steel. In parallel, governments should invest in strengthening domestic supply chains and our industrial capacity to meet economic needs.

Since Trump came to office, he has imposed 25 percent tariffs on Canadian steel and aluminum and repeatedly commented on turning Canada into the 51st state. When Carney met with French President Macron, Macron said fair trade “is certainly more effective than tariffs, which create inflation and damage supply chains and our economic integration.”

By Miller Wood Trade Publications

The premier online information source for the forest products industry since 1927.

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