Lumber Hits 4-week Low

Lumber prices fell below $600 per thousand board feet, reaching a one-month low as weaker US housing demand and heightened trade uncertainty weighed on the market. US construction spending unexpectedly declined in June, with spending on lumber-intensive single-family housing falling 0.6% from the previous month and 3.3% from a year earlier, pointing to softer demand for construction timber. Although Canadian softwood lumber was exempt from Washington's new 50% tariffs, it remains subject to existing duties of nearly 35%, continuing to pressure producers' margins. The Forest Products Association of Canada said the trade measures dealt a further blow to the forestry sector, where mills are already operating below capacity following production curtailments and closures, including the Fox Creek mill. Meanwhile, the US Lumber Coalition argued that Canada's excess production capacity continues to distort the market, while Ottawa has extended support measures for the industry.

Lumber decreased to 618.00 USD/1000 board feet, the lowest since June 2026. Over the past 4 weeks, Lumber lost 0.15%, and in the last 12 months, it decreased 11.06%.

Lumber prices fell below $650 per thousand board feet after reaching a near one-year high, as new U.S. tariffs on most Canadian wood-related products weighed on the market. Although Canadian softwood lumber was exempt from Washington's new 50% tariffs, 98 other wood-product categories remained subject to the duties, deflating hopes of a lumber carve-out. Meanwhile, the Canadian government announced additional financial support for lumber producers in Western Canada to help offset tariffs and trade uncertainty. The Forest Products Association of Canada described the measures as a direct blow to the country's forestry sector, where mills are already operating below capacity, as Canadian duties of nearly 35% on lumber forced production cuts and mill closures. Still, wildfires across Western Canada continued to threaten lumber availability, while President Donald Trump warned that wildfire-related costs could be incorporated into existing duties.