06.08.202516:47:12UTC+00Lumber Eases from Multi-Year High

Lumber futures have decreased to approximately $670 per thousand board feet, following their peak of $695.5 on August 1st, reached earlier in May 2022. This decline is attributed to a slowdown in new construction activity, only slight tightening of supply, and trade tensions altering international supply dynamics. During the summer, U.S. housing starts dropped, with single-family home construction down by about 10% compared to the previous year in June, and completions decreased by 15% from May, reducing demand for framing lumber. This decline occurred even as mills continued to operate with low utilization rates of around 64%, reflecting an ongoing oversupply in a stagnating market. On the trade front, the introduction of significant duties on Canadian exports—now exceeding 20% and expected to surpass 30%—has disrupted traditional supply routes. Nonetheless, Canadian producers have responded by expediting shipments to alternative markets, thereby mitigating upward price pressures while reducing available regional volumes. In response, Canada has committed C$1.2 billion in support for the industry, signifying both the sector's struggles and a determination to stabilize domestic production.