Lumber Market Downturn Prompts Conifex to Halt Mackenzie Sawmill in December
Rubber and Wood | 2025-12-01 15:08:02
The company emphasized that its power generation operations and competitive log cost structure continue to support business resilience.
By Paul Ploumis
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.
POLL
What is the main factor influencing Conifex Timber’s temporary sawmill curtailment?
Frequently Asked Questions
- Why is Conifex Timber curtailing operations at its Mackenzie sawmill?
The curtailment is due to weak North American lumber markets, including falling Western SPF prices, slower construction, high interest rates, and increased U.S. tariffs on Canadian softwood lumber.
- How long will the Mackenzie sawmill curtailment last?
Operations will be curtailed for four weeks starting December 15, 2025, reducing production by approximately 13 million board feet.
- What is Conifex’s outlook on lumber demand?
Despite near-term challenges, the company remains optimistic about medium- and long-term SPF lumber demand, with a recovery expected in the second half of 2026 due to housing shortages and improving affordability.
- Why is Conifex temporarily curtailing operations at its Mackenzie, BC sawmill in December 2025?
Conifex is temporarily curtailing operations at its Mackenzie, British Columbia sawmill for four weeks starting December 15, 2025 due to weak North American lumber markets and sharply lower Western SPF prices. High interest rates and increased U.S. softwood lumber duties have eroded margins across the sector.
The curtailment is expected to reduce production by about 13 million board feet, helping limit operating losses while the company monitors market conditions and prepares to resume full operations when demand improves.- How much will Conifex’s Mackenzie curtailment reduce SPF lumber production, and for how long?
The Mackenzie curtailment is planned for four weeks starting December 15, 2025, and is expected to lower output by roughly 13 million board feet of SPF lumber. This short, defined pause is designed to rebalance supply with weak demand while maintaining operational readiness.
By limiting production during a period of depressed Western SPF prices, Conifex aims to reduce cash losses without permanently affecting its Mackenzie footprint or long-term customer relationships.
- What market factors are driving the current weakness in North American Western SPF lumber prices?
Western SPF lumber prices have dropped sharply due to slower residential construction, softer repair-and-remodel activity, elevated interest rates, and higher U.S. countervailing and anti-dumping duties on Canadian softwood lumber. These forces are compressing cash margins and triggering curtailments across the industry.
Prolonged high borrowing costs, cautious homebuilders, and ongoing U.S.-Canada softwood lumber trade tensions are keeping demand subdued and volatility elevated, pressuring producers like Conifex to adjust capacity.
- Why does Conifex remain optimistic about SPF lumber fundamentals despite the 2025 curtailment?
Conifex remains optimistic about medium- and long-term SPF lumber fundamentals because of structural U.S. housing shortages, aging housing stock, and expected affordability improvements as interest rates normalize. These drivers are anticipated to support a gradual demand recovery in the second half of 2026.
As housing supply tightens and financing conditions ease, underlying demand for framing lumber used in new builds and renovations is expected to strengthen, supporting more sustainable pricing and mill utilization levels.
- What does the Mackenzie curtailment mean for local jobs and rural manufacturing capacity?
The temporary Mackenzie curtailment underscores the importance of timely government action and financing tools to help stabilize operations, protect jobs, and maintain rural manufacturing capacity in British Columbia’s lumber sector. Conifex has emphasized its ongoing commitment to Mackenzie, its employees, and customers.
Short-term production cuts help avoid deeper structural closures, giving the company room to navigate low prices while working with federal programs to preserve long-term employment and community economic activity.
