Lumber Falls Toward 2-Year Low
Lumber futures fell below $526 per thousand board feet, moving back towards their lowest level in more than two years, as US-Canada trade talks revived expectations of a potential tariff deal. The Trump administration is seeking an agreement with Canada on trade barriers, including lumber tariffs. Removing these duties could increase US supply and weigh on prices. The US Commerce Department previously lowered antidumping and countervailing duties on Canadian softwood to 24.75% from 35.16%, although a separate 10% tariff keeps the total rate at 34.75%. Meanwhile, prolonged trade barriers continue to weigh on the already weak US housing market, while mill closures across North America could tighten supply. Low prices and subdued demand may also prompt producers to cut output as profitability comes under pressure. Housing demand remains constrained by mortgage rates above 7%, high construction costs and labour shortages, although rates have declined for a third consecutive week.
Lumber futures fell below $526 per thousand board feet, moving back towards their lowest level in more than two years, as US-Canada trade talks revived expectations of a potential tariff deal. The Trump administration is seeking an agreement with Canada on trade barriers, including lumber tariffs. Removing these duties could increase US supply and weigh on prices. The US Commerce Department previously lowered antidumping and countervailing duties on Canadian softwood to 24.75% from 35.16%, although a separate 10% tariff keeps the total rate at 34.75%.
Meanwhile, prolonged trade barriers continue to weigh on the already weak US housing market, while mill closures across North America could tighten supply. Low prices and subdued demand may also prompt producers to cut output as profitability comes under pressure. Housing demand remains constrained by mortgage rates above 7%, high construction costs and labour shortages, although rates have declined for a third consecutive week.