Business, Contracting, Markets 29 February 2025 mills. Canadian timber harvest and mill production declines are reported in B.C. the past decade, due to impacts from pest- and fire-caused tree mortality, government regulation, habitat set-asides, low market price, and U.S. softwood lumber duties on Canadian lumber import to the U.S. Notable is that the U.S. South in 2025 will surpass both Canada and the U.S. West in regional lumber output. Some U.S. West and B.C. forestry companies have invested in U.S. South mills and forestland, as a strategy to capture lower costs, and/or to hedge against U.S. softwood lumber duties. B.C.-based Canfor and West Fraser operate more U.S. South mills than Canadian mills. Lumber Markets In December, structural lumber price indices retreated less than their November gains, while remaining higher than one year ago. Renewed building optimism has lifted markets since October. The approximated lumber index listed below is a U.S. and Canada nationwide composite for various grades of structural lumber, reported by www. nahb.org. Framing Lumber Price* 1/3/25 12/6/24 Year Ago Framing Lumber Composite Price[mbf] $435 $441 $400 * Source: National Association of Home Builders, approximated as reported from Random Lengths Lumber Composite Price—$ per thousand bdft. lumber tally. Log Markets In December, Washington’s reported domestic log prices compared to the prior month on the westside were mixed, with fir rising 9%, but hemlock and alder with no gain. Eastside prices consistently rose 1% to 3%. Domestic-mill log prices shown below are WA pond values that are similar to Oregon’s. WA log prices are reported monthly online without fee by WA Dept. of Natural Resources, at: https://www.dnr.wa.gov/programsand-services/product-sales-and-leasing/ timber-sales/timber-sale-querylog-prices/. December 2024 WA Delivered Log Prices† WA Coast Region Species & Grade Dec Nov Year Ago Doug fir 2S 731 669 663 Hemlock 2S 472 489 467 Alder 3S 600 600 570 WA Eastside Region Species; camprun Dec Nov Year Ago Doug fir/larch 483 478 516 White fir/hem 441 429 490 Lodgepole 426 414 459 P Pine 395 391 395 † Source: WA Dept of Natural Resources; WA Mill Log Prices; Domestically Processed—$ per thousand bdft; average price; log scale, pond value.
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