Kevin Mason
In mid-April, the Harvard Joint Centre for Housing Studies (JCHS) released its Leading Indicator of Remodeling Activity update, forecasting R&R growth ~+1.6% per quarter between now and Q1/26. This projected growth comes after a modest pullback in R&R spending in 2024 and will be welcomed by North American solid-wood producers given expected declines in demand from new residential construction in the coming quarters. …Recent pricing trends persisted in North American lumber markets over the past month, with S-P-F prices continuing lower while SYP prices moved higher. …A modest seasonal uptick in demand from treaters appears to be one of the catalysts creating SYP price improvement, while the pause on tariffs—the threat of which had previously boosted S-P-F prices—has now precipitated a drop in S-P-F lumber pricing.
As we’ve highlighted exhaustively over the past several months, duties on Canadian lumber exports to the US are scheduled to more than double later this year, and there is still potential for incremental lumber tariffs following a Section 232 investigation (there is the potential for tariffs to extend to panels, etc., but even producers don’t have any clarity). Barring an unlikely spike in lumber demand, many Canadian sawmills are likely to discover that the economics of selling lumber into the US no longer work (unless prices move substantially higher—but that will be driven by closures in Canada). …For Canadian producers, do alternative markets exist, or could a surge in Canadian homebuilding replace some of the lost volumes to the US? In short, there are no easily accessible markets that come close to the size of the US and that can be supplied by Canadian mills.
In the face of the unjustified economic attack by the leader of our U.S. neighbours, Canadian Forest Owners (CFO) stand fast as your good neighbours, who are committed to sustainable forest management for resilient, thriving communities coast to coast. Last week’s announced tariffs on Canada’s wood products by U.S. President Trump will harm not just forest landowners but local mills, workers and their families, communities, especially rural ones, and customers on both sides of the border. Together we stand firm with our colleagues in industry and the federal and provincial governments to strengthen the Canadian forest sector and work to bolster family woodlots and the economies of rural communities.
While the market tries to process what’s to come on the trade front, it’s abundantly clear that the new administration is paying special attention to lumber and likely other wood products. Trump and his surrogates have emphasized the point of view that the US has the underlying resources to produce all its own lumber and wood product needs. In response, there have been a number of news articles highlighting the statements and questioning the idea of whether or not America can quickly and completely wean itself off Canadian wood products. …Canada currently supplies about 12.0 BBF of softwood lumber to the US market. After accounting for the 1.3 BBF of exports the US has shipped in recent years, the US is still short just over 3.2 BBF of operable capacity to quickly fill Canadian lumber supply and still meet current demand levels. In other words, at current demand levels, the US softwood lumber market does not clear without Canadian supply.
Professionals working in the lumber and sawmill sector and looking to advance their careers can gain specialized training through BCIT’s Associate Certificate in Industrial Wood Processing, starting June 2025. The IWP program was developed with industry subject matter experts and informed by industry leaders to support upskilling and professional development within the sector. The program is 1-year, delivered online and part-time to allow students to balance work and studies.
The BC Truck Loggers Association is pleased to share and invite you to access the newly developed B.C. Timber Harvest Rate Model. The tool was built using data provided by contractors as a joint project of the TLA, ILA and NWLA. The tool calculates the hourly rates for equipment used in BC’s forest industry. It’s designed to give contractors a baseline rate for a selected piece of equipment, serving as a starting point. The rates in the model reflect the required revenues of a contractor who runs a reasonably efficient operation; however, they may vary based on specific operations. The parameters (such as labour and fuel) can be adjusted in the model to calculate rates tailored to specific needs.
The U.S. Commerce Department today announced new preliminary anti-dumping duties on Canadian softwood lumber imports of 20%. …The duties won’t become final until August, when final determinations are expected to be made. …The new preliminary duties is just the first shot across the bow in what is expected to be a nasty trade war, with additional tariffs that may be layered on top of duties. …Anti-dumping and countervailing duties have been in place on Canadian softwood lumber at varying levels since 2017, following the expiration of the last softwood lumber agreement in 2015. The duties on Canadian softwood lumber have been effective in shrinking Canada’s market share… from about 35% in 2016, to about 24% as of the end of 2024.
Vancouver —Forest Professionals British Columbia (FPBC) honoured 11 individuals as part of its recognition program in Victoria on February 6. FPBC recognized four Distinguished Forest Professionals, one Forest Professional of the Year, one volunteer of the year, and five authors for best magazine article at the 77th FPBC forestry conference recognition banquet. Mark Hay, RPF, of Vernon, Steve Kozuki, RPF(Ret), of Williams Lake, Randy Waterous, RFT, of Grand Forks, and the late Cindy Stern, RPF, of Parksville, were honoured as Distinguished Forest Professionals. This category recognizes significant accomplishments over a career, for providing outstanding service to the profession of forestry and for furthering the principles of FPBC. It is the profession’s highest honour for a registrant. Colin Mahony, PhD, RPF, of Victoria, is the Forest Professional of the Year, recognizing a Registered Professional Forester (RPF), Registered Forest Technologist (RFT), or Affiliated Forest Professional (AFP) for recent, outstanding service to the profession of forestry and furthering the principles of FPBC.
