Lumber Rises Amid Looming Tariffs

SEATTLE (Scrap Monster): Lumber futures rose past $610 per thousand board feet in mid-October, approaching monthly highs as markets priced in tighter near-term supply and looming trade restrictions.

Under newly announced US Section 232 tariffs that take effect on October 14th, imported softwood lumber will face a 10% duty and finished wood goods such as cabinets and furniture will face higher levies, prompting importers to front-load purchases and draw down inventories.

Domestic output is also constrained as sawmills run cautiously after years of underinvestment, logging curbs in sensitive regions and slow capacity restarts have limited production.

The cost and delay of switching suppliers is material given that Canadian lumber, which supplies much of US demand, already carries elevated antidumping and countervailing duties, intensifying the supply squeeze.

Courtesy: www.tradingview.com