Oversupply hits Canadian lumber industry

Canadian lumber producers are facing one of the sharpest price drops in years, as an unexpected combination of overproduction, weak demand, and new export duties has sent prices tumbling. Despite expectations that tariffs would push values higher, the opposite has occurred — and the sector is now struggling with oversupply and shrinking margins. Lumber futures have fallen by around 25% since early August, erasing nearly all of the gains made earlier in the summer. The decline comes just weeks after the latest increase in U.S. duties on Canadian softwood lumber took effect. Instead of tightening the market, the new ...