Lumber Remains Subdued

2025-12-01 15:50 By Felipe Alarcon 1 min. read

Lumber futures fell toward $530 per thousand board feet, down nearly 10% from November’s peak, as the market contends with pronounced oversupply and lingering weak demand.

Mills and distributors continue to carry elevated inventories, a hangover from early 2025 when buyers front-loaded purchases in anticipation of tariffs, leaving the market with a persistent supply overhang.

At the same time, US housing starts and building permits remain below last year’s levels, reflecting a prolonged construction slowdown as easing borrowing costs have yet to materialize in higher new building activity and limit near-term consumption of framing lumber.

Demand from renovation and new homebuilding also remains subdued, with housing-related wood products consumption estimated to have declined in 2024 and only a modest recovery expected in 2025.

With mortgage rates still elevated and housing demand soft, the current imbalance between supply and demand is set to keep pressure on lumber for longer.



News Stream
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