US lumber futures reach 3-month high

US lumber futures traded above $610 per thousand board feet in February, a near three-month high as mill closures and trade uncertainty exacerbated supply pressures. North American production capacity fell by 3.1 billion board feet in 2024 due to curtailments, with Canadian sawmills particularly affected by rising U.S. tariffs, which could more than double from 14.5% this year. The looming imposition of a 25% tariff on Canadian softwood lumber, combined with existing anti-dumping duties, further tightens capacity for domestically produced alternatives. The National Home Builders Association warned that higher tariffs on lumber ...