Lumber Market Downturn Prompts Conifex to Halt Mackenzie Sawmill in December
The company emphasized that its power generation operations and competitive log cost structure continue to support business resilience.
SEATTLE (Scrap Monster): Conifex Timber Inc. announced it will temporarily curtail operations at its Mackenzie, British Columbia sawmill for four weeks starting December 15, 2025, due to continued weakness in North American lumber markets. Benchmark Western SPF prices have dropped sharply in recent months, driven by slower residential construction, soft repair-and-remodel activity, high interest rates, and increased U.S. countervailing and anti-dumping duties on Canadian softwood lumber. The curtailment is expected to reduce production by approximately 13 million board feet.
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Despite near-term challenges, Conifex remains optimistic about medium- and long-term fundamentals for SPF lumber. Structural housing shortages in the U.S., aging housing stock, and improving affordability as interest rates normalize are expected to support a gradual recovery in demand in the second half of 2026.
Conifex has applied for federal support through the Large Enterprise Tariff Loan Program and BDC Loan Guarantee Program, highlighting the importance of timely government action to stabilize operations, protect jobs, and sustain rural manufacturing capacity.
The company emphasized that its power generation operations and competitive log cost structure continue to support business resilience. Conifex remains committed to Mackenzie, its employees, and customers, monitoring market conditions closely while preparing to resume full operations once conditions improve.