28.10.202517:57:20UTC+00Lumber Drops to 7-Week Low

Lumber futures have plummeted to approximately $560 per thousand board feet, marking a seven-week low as a result of decreasing demand, continued oversupply, and uncertainties in trade policy coming together. The pressure on Canadian softwood has intensified due to US tariffs, which include existing antidumping and countervailing duties of roughly 35%, along with additional Section 232 tariffs of 10% on timber and 25% on wood products, driving import costs over 45%. The decline is further exacerbated by weak demand; US residential building permits have fallen to a seasonally adjusted annual rate of 1.4 million units in July, the lowest since June 2020, and construction spending has decreased by 3.4% since May 2024. Although housing starts are lingering near a five-year low, heightened import costs have not significantly impacted retail prices. Export opportunities have also contracted, with Canadian softwood affected by tariffs and hardwood exports to China plunging from 40% of the market in 2017 to just 7% today. In response, temporary closures and production cutbacks at mills are becoming more common, but abundant stockpiles and slow-moving construction activities continue to apply downward pressure on prices.