For the Quarter Ending June 2025
North America
• The Price Index for plywood in the USA increased during the second quarter of 2025, primarily driven by elevated demand from the construction and renovation sectors.
• The rise in plywood prices was supported by a strong housing market, ongoing infrastructure projects, and increased industrial usage, which pushed up the Plywood Spot Price across key distribution hubs.
• Supply chain constraints and higher raw material costs contributed to an upward Plywood Production Cost Trend, adding pressure on overall pricing levels.
• Despite these cost increases, manufacturers were able to maintain steady production levels, balancing supply with the rising Plywood Demand Outlook in both residential and commercial segments.
Why did the plywood Price change in July 2025 in the US?
• The Price of Plywood further to increase in July 2025, reflecting sustained demand momentum and limited supply growth. The Plywood Price Forecast indicates that prices will continue their upward trajectory due to ongoing strength in construction activity and constrained timber availability.
• Logistics improvements and seasonal factors are not expected to significantly ease pricing pressures, keeping the Plywood Spot Price elevated through the third quarter.
• The Plywood Production Cost Trend remains on an upward path owing to inflationary pressures on energy and labor, which are not expected to abate soon.
• Overall, the Plywood Demand Outlook remains positive for the USA, with demand anticipated to stay robust throughout mid-2025, reinforcing the bullish pricing environment.
APAC
• In April 2025, the plywood price index in APAC increased due to a sharp rise in export activity and steady domestic demand, mainly driven by China.
• May 2025 saw a continued upward trend in the plywood price index, with prices rising by 9.6%, supported by strong demand from Europe and North America.
• June 2025 recorded a modest 1% increase in the plywood price index, reflecting a relatively stable market despite logistical issues and lower log shipments.
Why did the Price of Plywood Change in July 2025 in Asia?
• In July 2025, the price of plywood remained stable, following a modest 1% increase in June. The Plywood Spot Price showed little movement during the month as supply and demand forces largely balanced each other out.
• On the supply side, the Plywood Production Cost Trend remained unchanged. However, continued low log shipment volumes (down 10% YoY) led to constrained inventories, which provided underlying support to prices.
• The Plywood Demand Outlook in July was mixed. Domestic construction activity in China remained slow due to high temperatures and rainfall, typical of summer months. However, demand from the furniture and interior sectors remained steady, and overseas interest from green building initiatives helped prevent any major price drop.
South America
• April 2025: Brazilian plywood Price Index rose notably, driven by a sharp expansion in exports, especially to North America, due to elevated demand from housing and renovation projects.
• May 2025: The plywood Price Index increased by 3%, supported by a 32% year-on-year surge in exports, reaching 228.1 thousand m³. Strong overseas orders from the US, Japan, and Korea boosted prices despite regional regulatory challenges such as U.S. tariffs.
• June 2025: The plywood Price Index declined by 3%, influenced by weakening overseas demand and persistent port congestion, especially at the Port of Santos, which disrupted export shipments.
Why did the plywood Price Index change in July 2025 in Brazil?
• The plywood Price Index is exhibited to decrease or stabilize in July 2025 due to ongoing export challenges stemming from port congestion, continued global economic uncertainties, and trade tensions.
• The Plywood Price Forecast indicates a cautious market environment with limited upside potential until logistical issues ease and demand picks up.
• Brazil’s abundant timber supply and efficient factory output kept the Plywood Production Cost Trend relatively stable during this period.
• The Plywood Demand Outlook remains cautious, with potential for gradual recovery dependent on resolving port issues and easing global trade tensions.
Europe
• In April 2025, Germany’s Price Index for plywood increased by 2.1%, reaching 419.1 points, driven by elevated import costs, rising freight rates, and inflation in exporting countries.
• In May 2025, the Price Index rose further by 1.9%, as tight supply of packaging wood and steady demand from the e-commerce and logistics sectors supported higher imported plywood prices.
• In June 2025, the Price Index recorded a modest 0.5% increase, reflecting stable market dynamics despite port congestion and EU-imposed anti-dumping duties on Chinese plywood imports.
Why did the plywood Price change in July 2025 in Europe?
• The Plywood Spot Price in April and May reflected a steady upward trend, in line with rising import costs and solid industrial demand.
• For July 2025, the Plywood Spot Price likely saw a mild decline due to improved logistics efficiency and temporary demand softening in packaging and industrial sectors.
• Germany’s domestic plywood production is minimal; therefore, import dynamics and global supply trends heavily influence the Plywood Production Cost Trend.
• In July 2025, the Plywood Demand Outlook may have softened slightly, particularly in the packaging sector, due to seasonal slowdowns and partial destocking after high Q2 procurement levels.
For the Quarter Ending March 2025
North America
In United States, the first quarter of 2025 the market experienced a decline in plywood demand compared to fourth quarter of 2025. The US construction industries exhibited variables, indicating growth in a few sectors and other facing challenges. The opening two months of 2025 faced a sharp decline, but the third month slightly uplifted the market. This decline reflected a complex interplay between supply management and market conditions. To meet the profit margins the manufacturers have deliberately increased the prices of plywood but still this strategy could not lift the market. This strategy was meant to balance rising operational costs while maintaining financial sustainability. No major disruptions were reported, the production of plywood across the key sector has remained steady.
However, the United States export market for plywood has encountered to increased challenges. Competition from international suppliers offering low-cost alternatives especially from countries from APAC region like China & Indonesia dominating the global competitiveness. As a result, opportunities for exporting plywood have been limited, compelling many U.S. manufacturers to shift their focus toward the domestic market. Despite these export pressures, the importers also faced challenges for importing of plywood in United States. The new tariff regime made under the current U.S. administration has shuffled the global dynamics.
APAC
In the first quarter of 2025, the Chinese Plywood market showcase mixed performance. The Chinese exports surged in February, later the market weakened in March due to the oversupply and sluggish demand.
The China increase its plywood production in February for exports as the overseas construction were boomed. The inventory supply continued to support international demand, but the demand was not much to restock the inventories. March Plywood prices declined by 2.9% reflecting the weak market sentiment and limited terminal consumption. The strong overseas demand was not sufficient to absorb the stocks, and oversupply inventory levels have put downward pressure on plywood industries to lower the price.
In the first quarter of 2025, Indonesian plywood market experienced strong export momentum and robust domestic demand. With an uptick of 2.81% in prices the plywood market was supported by infrastructure projects and custom plywood product. However, the market navigated challenges from raw material cost volatility and environmental compliance.
The export competitiveness rose, especially in ASEAN+3 aided by tariff and digital trade integration. Indonesia held 10.3% of the market share in 2024 and continued the same in 1Q 2025.
Europe
In the first quarter of 2025 the German plywood market expressed considerable price volatility and supply chain challenges. The challenges were shaped due to rise in import costs, tariffs on Russian plywood, and logistical disruptions dropped plywood prices by 0.85%. While in the early quarter demand was strong, and March saw a slowdown due to project delays and high costs. Plywood imports were reduced, the buyers were pushed to buy costlier alternative of Russian birch plywood after EU imposed 28% tariff on Russian. Due to EU tariff the tight availability of Plywood escalated the price.
The first quarter of 2025 ended still firmly in contraction territory. While the rate of decline in activity. Considerable decline in estates, the building firms remained in retrenchment mode, reducing manpower and material purchasing in March.
The residential sector exhibits a sharp rate of decline in contraction for the opening three months of 2025. The decline in commercial activity led to the fall of contractions in Europe, the fall markedly to the greatest extent since last December. Civil engineering also posted its worst performance for three months.
South America
Slow and steady South American plywood market seems to recover after the massive drop received in December. Brazilian plywood export experienced notable growth in the first quarter of 2025, with a 4% year to year increase in February and a sharp 42% increase in March.
This key driven support came though overseas construction and furniture industries, particularly in North America and Europe. Brazil is known for its reputed for high quality plywood and improved international logistics capabilities, such factors helped Brazil for exports growth.
The demand trend at the domestic market reflected good plywood sales, assisted by housing project (urban infrastructure expansion) and growth in the furniture manufacturing sector. Exports in March surge led to temporary tightening of domestic supply, this contributed to a modest rise in prices.
Brazil sustained its production supported by well structured manufacturing infrastructure and abundant timber reserves. Brazil thoroughly maintained its inventories for ease of supply. February became a slightly challenging month due to ongoing compliance of environmental and sustainability regulations.
FAQs
1. What is the current Price Index of plywood in the USA?
The plywood Price Index in the USA increased in Q2 2025 due to strong demand from construction and industrial sectors. Prices remain elevated as of mid-2025, reflecting ongoing supply constraints and high raw material costs.
2. Who are the top plywood producers in the United States?
Leading plywood producers in the USA include Weyerhaeuser Company, Georgia-Pacific LLC, Boise Cascade Company, and PotlatchDeltic. These companies supply a significant portion of domestic plywood used in construction and industrial applications.
3. What is the Plywood Price Forecast for the rest of 2025?
The Plywood Price Forecast suggests prices will likely continue rising or stabilize at high levels through late 2025, driven by sustained demand, limited supply growth, and inflationary pressures affecting production costs and logistics.
4. What factors influence the plywood production cost trend in the USA?
The Plywood Production Cost Trend is influenced by raw material availability and prices (especially timber), labor costs, energy expenses, and transportation logistics. Inflationary pressures on these inputs have contributed to higher production costs in 2025.
