- Softwood lumber reached $686.72 per thousand board-feet in intraday trading on March 24, its highest level since the pandemic surge.
- Wildfires, seasonal logging slowdowns, mill closures in Canada, and looming US tariffs are all tightening supply.
- The current 14.54% tariff on Canadian softwood lumber could increase further following a delayed US Department of Commerce review.
Lumber Peaks Again
According to GlobeSt, softwood lumber prices soared this week, touching levels not seen since the pandemic’s historic run-up.
Intraday spot prices reached $686.72 per thousand board-feet on March 24 before settling slightly lower at $671.09 by March 26, per Trading Economics.
What’s Behind The Spike
The increase stems from a perfect storm of seasonal demand and tightening supply.
Supplies from Canada—America’s largest softwood supplier—have tightened due to wildfires, logging slowdowns, and sawmill closures. Companies like Canfor and Western Forest Products have slashed production, citing both weak demand and rising tariff concerns.
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By The Numbers
- The framing lumber composite price rose to $486 per thousand board feet as of March 21—up 14.9% year-over-year and the highest since June 2023.
- Lumber futures are up 4.6% week-over-week and 11% year-over-year.
- Prices for Western spruce, pine, and fir 2×10 lumber jumped 63.2% YoY; green Douglas fir 2×10 surged 53.6%.
Tariffs On The Horizon
The US imposed higher duties on Canadian softwood last August, pushing rates from 8.05% to 14.54%. Now, a delayed Department of Commerce review could see those rates double. The uncertainty is prompting panic buying and reduced output north of the border.
Looking Ahead
With demand heating up and production cuts continuing, lumber prices may remain elevated well into the spring.
According to the National Association of Home Builders (NAHB), solutions include: a long-term tariff deal with Canada, boosting imports, increasing domestic supply, reducing lumber exports to China, and diversifying sourcing markets.
