The North American wood products market entered 2026 carrying the weight of a difficult 2025. …Now, a new force is moving through the market: an energy shock tied to the Iran war. …Approx 20% of global LNG supply and 15% of oil supply have been disrupted, representing what is the biggest energy supply shock in history. The result is a market dealing with both soft demand and rising input costs; a stagflationary shock. …The effects are already visible across multiple stages of the wood products supply chain:

• Logging. We anticipate that a sharp rise in diesel prices in early 2026.
• Mills and wholesalers. Have introduced fuel surcharges to deal with the spike in fuel costs. 
• Resin and wax costs. For panel producers, resin and wax costs are a source of further pressure. 
• Freight. Shipping disruption is spreading from Europe to the Middle East, Africa and Asia.
• Consumer spending. Higher energy prices act as a tax on consumers.