US Southern states surpasses Canada in lumber production for the first time since 1970

Posted on November 5, 2024   |  

For the first time since 1970, the American South will lead in North American lumber production, surpassing Canada.

Canadian lumber production has decreased due to trade restrictions, wildfires, insect infestations, and strict land-use regulations affecting British Columbia's economy.

Fastmarkets revealed that recent increases in softwood lumber duties have hit Canadian producers hard, with an 81% rise in August and potential for further increases.

The U.S. continues its long-standing dispute with Canada over softwood lumber, accusing Canadian companies of selling timber at unfairly low prices, which they consider a subsidy.

Lumber industry leaders in British Columbia are calling on the Canadian government to take stronger action in the ongoing dispute, especially as the U.S. has nearly doubled duties on Canadian lumber.

While Canadian sawmills struggle with high costs and declining revenues, the U.S. South is thriving, benefiting from the trade duties.

North America has seen a 4% loss in sawmill capacity this year, with over 40% of those closures in British Columbia.

Canfor Corp. plans to shut down two sawmills in British Columbia by the end of the year and will take a C$100 million loss due to the duties and limited wood supply.