Lumber Nears 3-Month Low

Lumber prices fell below $580 per thousand board feet, heading toward a three-month low as weaker US housing demand and persistent trade uncertainty weighed on the market. While Canadian softwood lumber was exempt from US’s new 50% tariffs, it remains subject to existing duties of nearly 35%, pressuring producers’ margins. The Forest Products Association of Canada said the trade measures dealt a further blow to the industry already operating below capacity amid production curtailments and closures, while Ottawa has extended support measures. The US Lumber Coalition argued that Canada’s excess production capacity continues to distort the market. Meanwhile, mortgage rates climbed to their highest level in a year, according to Freddie Mac, while mortgage applications declined in the final weeks of July, reflecting deteriorating homebuying activity. Demand was further pressured by weaker construction spending on lumber-intensive single-family housing, falling 3.3% from last year in June.

Register a Revolut Business Account