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Forest product updates
Lumber prices gain slightly as industry enters peak construction season.
Lumber front month futures prices strengthened slightly in May, but continue to trade within a relatively tight range. Reduced lumber supply due to North American mill curtailments and closures over the last year have improved the balance of supply and demand. Residential improvements and single-family home construction activity, the two largest softwood lumber demand drivers, remain generally flat. Multi-family home construction surged in March and April, building on a two-year upward trend. Multi-family home construction makes up about 4.3% of softwood lumber demand. Homeowner affordability weakened in May as inflation-adjusted wages fell and mortgage rates increased.
Northwest log prices were relatively flat in May. Wildfire risk is high for parts of Idaho, Oregon and Washington, and some mills are reportedly building inventories in preparation for reduced log flows later in the year.
Profitability
June 10, 2026Forest product mills: Breakeven profitability - Neutral 12-month outlook
Timberlands: Slightly profitable - Neutral 12-month outlook
Low homeowner affordability continues to weigh on the housing market, resulting in relatively weak wood product demand and prices.
Log demand is limited as wood product mills face a weak housing market.
The U.S. housing market is the primary driver of forest products demand. Log and lumber exports play a relatively minor role, making up about 6% and 3% of total domestic production, respectively. On the West Coast, log producers have historically benefited from strong Japanese demand for high-quality grades. Following the Great Recession, demand from China increased significantly to support housing construction. These trends are reversing due to aging demographics and weakening economies. The Softwood Lumber Agreement sets the terms for Canadian lumber exports to the U.S., which make up about a quarter of total domestic supply.
Log production, exports and imports
Forisk. U.S. Census Bureau. Production levels were calculated using region specific recovery rates. Trade data was converted using .22 thousand board feet per cubic meter.
Lumber production, exports and imports
Forisk. U.S. Census Bureau. Trade data was converted using .452 thousand board feet per cubic meter.
Tariff tracker - Tariff rates applied to U.S. trade partners are consistenly updated to reflect policy changes. The World Trade Organization (WTO) tracks duties and tariffs on forest products. For your convenience, the following links will take you to tariff data for top markets, including Japan and Vietnam. Logs are currently exempt from tariffs for Canada under the United States-Mexico-Canada Agreement (USMCA), but please refer to the U.S. Trade Representative website for up-to-date information. The U.S. applies countervailing duties on Canadian lumber imports based on an annual review process (detailed information can be found at the Federal Register). Please consult with a trade lawyer or professional for detailed and up-to-date insights on tariff rates and their application to forest products.
For guidance on interpreting duty and tariff rates, please refer to our Tariff Guide.
Forest product updates
Lumber prices gain slightly as industry enters peak construction season.
Lumber front month futures prices strengthened slightly in May, but continue to trade within a relatively tight range. Reduced lumber supply due to North American mill curtailments and closures over the last year have improved the balance of supply and demand. Residential improvements and single-family home construction activity, the two largest softwood lumber demand drivers, remain generally flat. Multi-family home construction surged in March and April, building on a two-year upward trend. Multi-family home construction makes up about 4.3% of softwood lumber demand. Homeowner affordability weakened in May as inflation-adjusted wages fell and mortgage rates increased.
Northwest log prices were relatively flat in May. Wildfire risk is high for parts of Idaho, Oregon and Washington, and some mills are reportedly building inventories in preparation for reduced log flows later in the year.
Profitability
June 10, 2026Forest product mills: Breakeven profitability - Neutral 12-month outlook
Timberlands: Slightly profitable - Neutral 12-month outlook
Low homeowner affordability continues to weigh on the housing market, resulting in relatively weak wood product demand and prices.
Log demand is limited as wood product mills face a weak housing market.
The U.S. housing market is the primary driver of forest products demand. Log and lumber exports play a relatively minor role, making up about 6% and 3% of total domestic production, respectively. On the West Coast, log producers have historically benefited from strong Japanese demand for high-quality grades. Following the Great Recession, demand from China increased significantly to support housing construction. These trends are reversing due to aging demographics and weakening economies. The Softwood Lumber Agreement sets the terms for Canadian lumber exports to the U.S., which make up about a quarter of total domestic supply.
Log production, exports and imports
Forisk. U.S. Census Bureau. Production levels were calculated using region specific recovery rates. Trade data was converted using .22 thousand board feet per cubic meter.
Lumber production, exports and imports
Forisk. U.S. Census Bureau. Trade data was converted using .452 thousand board feet per cubic meter.
Tariff tracker - Tariff rates applied to U.S. trade partners are consistenly updated to reflect policy changes. The World Trade Organization (WTO) tracks duties and tariffs on forest products. For your convenience, the following links will take you to tariff data for top markets, including Japan and Vietnam. Logs are currently exempt from tariffs for Canada under the United States-Mexico-Canada Agreement (USMCA), but please refer to the U.S. Trade Representative website for up-to-date information. The U.S. applies countervailing duties on Canadian lumber imports based on an annual review process (detailed information can be found at the Federal Register). Please consult with a trade lawyer or professional for detailed and up-to-date insights on tariff rates and their application to forest products.
For guidance on interpreting duty and tariff rates, please refer to our Tariff Guide.
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