Lumber Hits Lowest Level in Over 2 Years

Lumber futures fell below $515 per thousand board feet to reach its lowest level since September 2024, amid persistent weakness in the U.S. housing market and elevated input costs. The White House removed 50% tariffs on Canadian plywood, effective October 30th, though softwood lumber tariffs remained in place and elevated, potentially making plywood a relatively cheaper substitute in certain construction applications. While the Commerce Department lowered antidumping and countervailing duties on Canadian softwood to 24.75% from 35.16%, a separate 10% US tariff brings total duties to 34.75%. The US Lumber Coalition backed the decision, as forestry groups have long accused Canada of dumping lumber in the US. President Trump also signed an order aimed at reducing homeownership costs. The measures come as the U.S. housing sector remains under pressure from high mortgage rates and construction costs, with homebuilder confidence falling to its lowest level in 14 years.

Lumber decreased to 514.00 USD/1000 board feet, the lowest since September 2024. Over the past 4 weeks, Lumber lost 2.91%, and in the last 12 months, it decreased 10.33%.

Lumber futures fell below $527 per thousand board feet, retreating toward a two-year low amid persistent weakness in the US housing market. Homebuilder confidence has fallen to its lowest level in 14 years, as high mortgage rates, labor shortages and high construction costs continue to weigh on the sector. Mortgage rates have climbed to 7.4%, their highest level in three years, raising borrowing costs, dampening housing demand and weighing on prices. On the other hand, trade tensions with Canada continue to constrain lumber availability and pressuring prices. Although the US Department of Commerce lowered antidumping and countervailing duties on Canadian softwood lumber to 24.75% from 35.16%, a separate 10% US tariff brings total duties to 34.75%, limiting the potential for a supply recovery. The US Lumber Coalition backed the decision, as forestry groups have long accused Canada of dumping lumber in the US. Conversely, the NAHB has called for a pause on building material tariffs.