North American lumber prices soaring in July as buyers fuss over Canada's forest fire

Posted on July 21, 2023

From late June to July, the North American lumber market is improving as buyers are concerned about Canada's forest fire, which will negatively affect lumber production from the reduced supply.

Higher interest rates and inflation, declining consumer confidence, and recession worries later negatively affected home buyers.

In the first 4 months of 2023, US housing starts averaged 1.375 million and soared to 1.63 million starts in May 2023, lower levels compared to the average of the last 2 years. 

Customers ignored big items and picked less costly home projects, western US's colder weather, and falling lumber prices reduced dollar sales. 

The demand trend is expected to grow marginally in the remaining months of 2023, lumber supplies will likely reduce in the US and Canada, except for the low-cost US South.