Lumber Remains Near 2-Year Low
Lumber futures hovered near $520 per thousand board feet, close to their lowest level in over two years, as traders weighed weakness in the US housing market against expectations of tighter supply. Housing demand remains constrained by elevated mortgage rates and higher construction costs linked to tariffs, although mortgage rates have eased for a second consecutive week. Meanwhile, Canada-US trade talks have resumed after collapsing in August, when tariffs on several wood products were introduced. Later in October, the US Commerce Department lowered antidumping and countervailing duties on Canadian softwood to 24.75% from 35.16%, although a separate 10% tariff keeps total duties at 34.75%. Persistent trade barriers continue to weigh on the market, while mill closures across North America could tighten supply. Low selling prices and subdued demand may also prompt mills to scale back production as profitability comes under pressure.
Lumber futures hovered near $520 per thousand board feet, close to their lowest level in over two years, as traders weighed weakness in the US housing market against expectations of tighter supply. Housing demand remains constrained by elevated mortgage rates and higher construction costs linked to tariffs, although mortgage rates have eased for a second consecutive week. Meanwhile, Canada-US trade talks have resumed after collapsing in August, when tariffs on several wood products were introduced.
Later in October, the US Commerce Department lowered antidumping and countervailing duties on Canadian softwood to 24.75% from 35.16%, although a separate 10% tariff keeps total duties at 34.75%. Persistent trade barriers continue to weigh on the market, while mill closures across North America could tighten supply. Low selling prices and subdued demand may also prompt mills to scale back production as profitability comes under pressure.