What we can offer you

We provide detailed transactional data, cost benchmarks and in-depth analytics for participants in the wood raw materials supply chain.
  • Pricing Data
  • Benchmarks
  • Product Forecasting
  • Advisory Services
  • Analytics
Learn More

SilvaStat360 Platform

  • Price Benchmarks
  • Madison’s Lumber Reporter
  • The Beck Group’s Sawmill TQ
  • Timber Supply Analysis 
  • Global Economic Data

Explore Forest2Market's Interactive Business Intelligence Platform

Learn More


From biomass suppliers in the Baltics to pulp producers in Brazil and TIMOs in the United States, Forest2Market provides products and services for suppliers, producers and other stakeholders in the global forest products industry.

Learn More

Why Lumber Prices Are Falling--Summer 2015

August 14, 2015
Author: Jay Engle

Why Lumber Prices Are Falling--Summer 2015

Lumber prices have taken a dive this summer, falling 21% from a February high of $380 per MBF to an August low of $307 per MBF (Figure 1). Composite prices are near the lowest level they have been in three years. This reversal is a result of several market forces that have collectively put downward pressure on prices.


1. Prices began climbing in 2012 as the housing market started to recover. Because a significant amount of sawmill capacity was shuttered during the recession, supply was constrained (mostly due to lack of kiln capacity) and prices increased. As more capacity came online, however, this pattern had to shift.

2. Housing start numbers have been solid in 2015, but a deeper look at the numbers shows that multiple family units are responsible for the higher housing start numbers, and multifamily units do not require as much wood as single family units.

3. Because of the currency exchange rate—the Canadian loonie is at an 11-year low against the US dollar—imports from Canada are flowing across the border as less expensive Canadian lumber has the market advantage. Domestic producers have been forced to lower their prices to remain competitive.

4. The strong US dollar has also diminished lumber exports, further weakening prices as exporters looked for domestic buyers at lower prices.

5. Extreme heat shortened hours on construction sites in some areas, slowing rates of completion.

6. Wholesalers, cautious in the absence of strong market indicators, are buying conservatively.

Prices are unlikely to recover this fall or winter, as the recent devaluation of the Chinese yuan will continue to erode US positions in export markets, and the US dollar relative to the Canadian loonie will remain strong, pulling imports across the border. Lower inventory or a stellar single-family start number may put some short-term upward pressure on price, but neither of these is likely to be strong enough to completely overcome the currency issues at play.

Mill2Market Weekly Lumber Market Report

Back to Blog

You May Also be Interested In

January 16, 2020
NA Dimension Softwood Lumber Prices Firm in Early 2020
As expected by most softwood lumber producers at the end of 2019, demand for construction framing dimension softwood...
Continue Reading
January 13, 2020
SYP Lumber Prices Deflate in 2019; What’s in Store for 2020?
2019 is now in the books and after 12 months of moderate volatility, southern yellow pine lumber prices finished the...
Continue Reading
November 25, 2019
Southern Yellow Pine Lumber Prices Volatile in November
Southern yellow pine lumber (SYP) prices demonstrated relatively flat performance throughout October. As a reminder...
Continue Reading