The Enormous Increases In The Softwood Lumber Duty On Canadian Wood
Shipments Into The US Finally Arrived.
This during a normal slower time for both housing construction activity and
sawmill manufacturing.
As hot summer weather across most of the continent sent folks off to
vacation, lumber industry players worked out their responses to this
additional constraint of cross-border trade.
Currently the two nations are in Softwood Lumber Dispute V (five), which —
over the last few decades — has succeeded in reducing Canadian shipments of
lumber to the US.
Historically, 85% of Canadian wood was sold to the US. Over the successive
disputes, this ratio dropped to less than 65%.
In the past, it was still less expensive for Canadians to pay the US duty
than the high shipping costs to offshore customers.
At this point, with the lumber duty so high, it is actually less expensive
for Canadians to send wood into alternative markets.
In the week ending August 1, 2025, the price of benchmark softwood lumber
item Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) was US$533 mfbm. This is up
+$6, or +1%, from the previous week when it was $527, said weekly Madison’s
Lumber Reporter.
That week’s price is up +$25, or +5%, from one month ago when it was $508.
Compared To The Same Week Last Year, When It Was Us$330 Mfbm, The Price Of
Western Spruce-Pine-Fir 2×4 #2&Btr Kd (Rl) For The Week Ending August 1,
2025 Was Up +$197, Or +60%.
Compared To Two Years Ago When It Was $458, That Week’S Price Was Up +$69,
Or +15%.
..
KEY TAKE-AWAYS:
Mid-summer trading volumes were low, as usual, for sellers of Western-SPF
lumber in the US.
Western-SPF lumber suppliers in Canada reacted with resounding
disappointment as duties imposed by the US nearly doubled.
Sawmills in Canada and customers in the US were factoring in these duty rate
hikes to assess the effect they will have on the market.
There was limited movement in prices as summer heat and depressed demand
kept construction and buying subdued.
A combination of trade dispute fatigue and the upcoming holiday weekend in
Canada resulted in apathy and absenteeism for Eastern-SPF players.
Suppliers of Southern Yellow Pine noted decent takeaway amid hot summer
weather and vacationing buyers.
Most SYP sawmills reported order files to within two weeks.
MADISON’S BENCHMARK TOP-SIX SOFTWOOD LUMBER AND PANEL PRICES: MONTHLY
AVERAGES
Source:
madisonsreport.com
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