Global softwood lumber imports in the 10 largest import markets by volume contract from a year earlier in January to March 2026, led by a 1.94 million m3 decline in the US, a 1.19 million m3 decline in Germany, and a 775 thousand m3 decline in China. Total imports across the 10 largest softwood lumber import markets by volume fall by 3.9 million m3 to 12.6 million m3 over the quarter. In the US, the decline comes as high import duties on Canadian softwood lumber restrain shipments and homebuilding stays weak as home sales remain soft and home prices stay elevated. Canada records the largest supplier volume decline in the quarter at 1.52 million m3. …Across suppliers in the period, volumes fall most for Canada at 1,516 thousand m3, Russia at 743 thousand m3, and Austria at 680 thousand m3, while Belarus records the largest increase at 15.7 thousand m3.
Rising mortgage rates aren’t the only thing freezing the housing market. Builders are contending with a fresh wave of sticker shock on the job site, as soaring prices for copper, lumber, diesel and aluminum drive up the cost of putting homes in the ground. A mix of geopolitical turmoil, tariffs and supply-chain disruptions is rippling through construction materials markets at a moment when affordability is already stretched thin, the Wall Street Journal reported. The result is higher costs for developers, more uncertainty for homebuilders and even fewer paths to affordable homeownership. Copper has become one of the industry’s biggest headaches. …Lumber prices are climbing again, too. Canadian sawmill closures and tariffs tied to the long-running U.S.-Canada softwood dispute have tightened supply heading into peak building season. …The broader concern for developers is that construction inflation could become self-reinforcing. Higher material costs feed broader inflation fears, which in turn keep borrowing costs elevated. 
Lumber futures have been trading below $600 per thousand board feet since early April, as weaker consumer sentiment and uncertainty surrounding developments in the Middle East weigh on demand. At the same time, supply constraints in several regions have partially offset the decline in demand. Profitability for Canadian mills remains under pressure from elevated duties and tariffs. The US has recently outlined preliminary antidumping and countervailing duties on Canadian softwood lumber, with the antidumping rate reduced from 20.6% to 10.7% and the countervailing duty trimmed from 14.6% to 14.2%, bringing the combined rate to about 25.9%. Including an existing 10% Section 232 tariff, total effective duties on Canadian imports are expected to remain near 35.9% once they take effect in August. Despite these measures aimed at supporting domestic producers, US sawmill utilisation remains relatively weak at around 64%, with capacity use trending lower since 2017.
BURNABY, BC — Interfor Corporation recorded a net loss in Q1’26 of $63.3 million, compared to a net loss of $104.6 million in Q4’25 and a net loss of $35.1 million in Q1’25. Adjusted EBITDA was $30.7 million on sales of $643.2 million in Q1’26 versus an Adjusted EBITDA loss of $29.2 million on sales of $600.6 million in Q4’25 and Adjusted EBITDA of $48.6 million on sales of $735.5 million in Q1’25. Highlights include: Lumber production of 856 million board feet was up 103 million board feet versus the preceding quarter driven primarily by higher operating rates at the U.S. Northwest and B.C. operations. Q4’25 production was impacted by temporary production curtailments in response to weak market conditions. Due to weak market conditions and other factors, Interfor indefinitely curtailed operations at its Ear Falls, Ontario sawmill in Q1’26 and at its Nairn and Gogama, Ontario sawmills in April 2026.
NEW YORK — Mercer reported first quarter 2026 Operating EBITDA of $7.8 million, a decrease from $47.1 million in the same quarter of 2025 and an increase from negative $20.1 million in the fourth quarter of 2025. In the first quarter of 2026, net loss was $52.0 million compared to $22.3 million in the same quarter of 2025 and $308.7 million in the fourth quarter of 2025. Mr. Juan Carlos Bueno, CEO, stated: “Our pulp sales realizations showed resilience this quarter as softwood pulp markets held steady, while hardwood pulp performance trended upward on favorable demand-supply dynamics. However, elevated fiber costs across our supply chain and a slower-than-anticipated recovery in prices continued to weigh on our results. …Mass timber momentum continues to build, backed by an order book and commitments of $171 million that support a multi-year production plan. …European softwood pulp prices increased compared to the fourth quarter of 2025 due to supply constraints, although these gains were offset by higher discounts.
VANCOUVER, BC — Canfor Corporation reported its first quarter of 2026 results. …The Company reported an operating loss of $72.5 million for the current quarter, compared to an operating loss of $415.9 million for the fourth quarter of 2025. After taking into consideration a $20.0 million reversal of a previously recognized inventory write-down, the Company’s adjusted operating loss was $92.5 million for the first quarter of 2026, compared to an adjusted operating loss of $145.0 million for the fourth quarter of 2025. These results largely reflected improved performance in both the lumber segment and, to a lesser extent, the pulp and paper segment. Canfor’s President and CEO, Susan Yurkovich, said, “While we saw an improvement in results, largely due to a supply-driven uptick in North American lumber pricing and higher production levels, demand remained relatively subdued. …Global pulp markets continued to face significant headwinds during the first quarter, with pulp producer inventories remaining elevated.”
B.C.’s housing market remained tepid into April as sales pointing to another disappointing spring market. Seasonally adjusted home sales decreased by 1.1 per cent in April to 5,227 units after a 0.5 per cent drop in March. This was also the lowest monthly figure since November 2023. …Weak housing market conditions are likely to progress in the near term given the shaky geopolitical climate, sluggish economic growth and weak labour market conditions. …On the manufacturing front, sales in B.C. rose marginally in March. …Wood product manufacturing also declined for the third consecutive month, falling 2.4 per cent to $728 million. This represents the lowest level since May 2020, when sales were $623 million. Year to date, durable goods sales are up 2.6 per cent.
VANCOUVER, BC — Conifex Timber reported results for the first quarter ended March 31, 2026. EBITDA was negative $7.7 million for the quarter compared to EBITDA of negative $12.6 million in the fourth quarter of 2025 and positive EBITDA of $4.9 million in the first quarter of 2025. Net loss was $9.4 million for the quarter versus a net loss of $11.4 million in the previous quarter and net income of $0.6 million in the first quarter of 2025. In March 2026, Conifex Mackenzie Forest Products, entered into a $19 million secured term loan with the Business Development Bank of Canada under the Softwood Lumber Guarantee Program… to support working capital and operations. In early February 2026, Conifex resumed sawmill operations at the Mackenzie Mill under a two-shift configuration following an extended period of single-shift operation. …The Power Plant continued to operate on its normal schedule.
VANCOUVER, BC — Western Forest Products reported a net loss was $19.9 million in the first quarter of 2026, compared to net income of $13.8 million in the first quarter of 2025 and net loss of $17.5 million in the fourth quarter of 2025. …The company reported Adjusted EBITDA of negative $13.6 million in the first quarter of 2026. In comparison, the Company reported Adjusted EBITDA of $3.5 million in the first quarter of 2025 and Adjusted EBITDA of negative $6.2 million in the fourth quarter of 2025. Other highlights include: Lumber production of 118 million board feet (versus 154 million board feet in Q1 2025), Lumber shipments of 113 million board feet (versus 156 million board feet in Q1 2025), Cedar lumber shipments of 25 million board feet (versus 31 million board feet in Q1 2025), Average lumber selling price of $1,422 per mfbm (versus $1,348 per mfbm in Q1 2025), and Average BC log sales price of $193 per m3 (versus $134 per m3 in Q1 2025).
Premier David Eby’s plummeting approval numbers aren’t the only figures the NDP government needs to worry about when it comes to the backlash over Indigenous reconciliation and private property rights. Many B.C. businesses are reporting they plan to scale back operations due to the conflict as well. Almost 74 per cent of B.C. businesses plan to decrease investment due to uncertainty over the Declaration on the Rights of Indigenous Peoples Act, according to a new survey of senior executives Wednesday by the Business Council of B.C. The majority cite increased time, cost, complexity or uncertainty in permitting caused by the court rulings, policy flips and changing landscape around the NDP’s DRIPA. As many as one-third said they plan to reduce hiring. “The desire to work with Indigenous communities to create prosperity for all remains strong but the message from business leaders is clear: DRIPA isn’t working,” said BCBC president Laura Jones.
Mortgage rates this week rose to the highest level since August, more bad news for home shoppers during what is usually the busiest time of the year for home sales. The average rate on a 30-year fixed mortgage rose to 6.51% this week, from 6.36% last week, 
US housing starts declined in April as construction of single-family homes dropped by the most in nearly a year, suggesting builders are growing cautious amid higher mortgage rates. New residential construction decreased 2.8% last month to an annualised rate of 1.47 million homes, according to government figures released on Thursday. Starts of single-family homes declined 9%, the most since August, to an annualised 930,000 pace. Multifamily housing starts, however, rose more than 10% to the highest level since May 2023. The report also showed single-family permits, a leading indicator of future construction, fell 2.6% to the lowest level since August. The figures suggest home builders remain focused on working off a still-elevated inventory of new properties. …Numerous challenges remain for a sustained pickup in home building, including rising mortgage rates, flagging consumer confidence and stretched household budgets.
Sentiment within Germany’s timber industry remained under pressure in April, with businesses increasingly pessimistic about the months ahead despite a slight improvement in current trading conditions. …Compared with Germany’s wider manufacturing sector, the timber industry continues to underperform, with the ifo Institute’s broader manufacturing index remaining significantly stronger. The picture across the wood sector remains uneven. Companies involved in prefabricated timber construction were the only group to report positive current business conditions, while sawmills, furniture manufacturers and timber packaging businesses continued to report weak trading environments. HDH linked the relatively stronger outlook in timber construction to improving housing activity. …However, the furniture sector continues to struggle with weak consumer confidence and declining construction completions. …Despite isolated signs of recovery in construction-related segments, HDH said overall business confidence remains at a persistently low level.