Canadian lumber production falls 16.6% in December - Supply chain challenges and price volatility

Canada's lumber production fell by 16.61tpd in December, and supply chains are facing challenges. Sawmill shipments have also fallen sharply, which may lead to price volatility and demand substitution, especially Chinese buyers turning to Russian lumber.
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Canadian lumber production falls by 16.61% in December

Timber Market News - According toStatistics Canada (StatCan)In the report released on March 4, 2025, wood production in December fell by 16.6% month-on-month to 3,332.9 cubic meters. Compared with the same period last year, production fell by 2.4%.

Canadian sawmills shipped 3,184.5 thousand cubic metres of lumber in December, down 21.41tpm from November and down 9.01tpm from the same period last year.

LumberFlow Expert Interpretation

With Canadian sawmill production down significantly, the supply chain will be directly impacted. Here is an in-depth analysis of the market dynamics:

  • Supply Chain Impact:The decline in production will lead to tight lumber supplies, which could trigger transportation bottlenecks, especially in the North American market, especially trade between the United States and Canada, which is expected to account for 38%.
  • Demand replacement mode:If lumber supplies from North America decrease, it is expected that Chinese buyers may turn to Russian lumber, further boosting Russia's share of the Chinese market.

Therefore, importers should re-evaluate their inventory strategies in the current market environment to cope with potential price fluctuations and supply instability.

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