Lumber Eases from Recent Highs

Lumber prices eased to near $624 per thousand board feet, after reaching near an eight-month high on June 22 amid concerns over higher import costs for Canadian softwood lumber and tighter supply conditions. Although preliminary antidumping and countervailing duty rates were recently lowered, the overall tariff burden remains elevated, including the existing Section 232 tariff set to take effect in August. The prospect of higher import costs has tightened supply expectations and prompted buyers to accelerate purchases, supporting prices in recent weeks. At the same time, U.S. domestic lumber production remains constrained, while demand for wood products continues to be underpinned by residential construction. However, declining housing affordability amid higher labor costs and elevated construction loans interest rates could curb new homebuilding activity and temper lumber demand in the months ahead.

Lumber climbed past $630 per thousand board feet, the highest level since October, amid higher effective US import costs on Canadian softwood and tighter expected supply. Prices rose despite a small reduction in preliminary antidumping and countervailing duties, because the combined tariff burden remains high at about 35.9% including the existing Section 232 levy, set to take effect in August. The market is also being driven by uncertainty ahead of final duty decisions, prompting buyers to accelerate purchases and lift near-term demand. At the same time, US domestic production is still constrained, while housing-related consumption remains structurally large, with softwood lumber and engineered wood products heavily used in new construction. Each new home requires roughly 15,000 board feet of lumber plus extensive engineered wood products, keeping baseline consumption elevated even in a softer housing cycle.

Lumber increased to 633.50 USD/1000 board feet, the highest since October 2025. Over the past 4 weeks, Lumber gained 6.31%, and in the last 12 months, it increased 2.68%.