Price of wood products

The price of wood products in Canada reached an index value of 168.6 in 2025, representing strong annualized growth of 7.5% since 2020. This period has seen heightened demand from a rebound in domestic and US construction markets, as well as expanding exports to China and other Asian regions supporting price escalation. Softwood lumber, accounting for a significant share of Canadian exports, benefited from elevated global construction activity. Despite wide domestic availability keeping supply generally stable, these export market pressures have continued to drive prices upward. Producers have also faced increased operating costs from persistent inflation and rising energy prices, which have further amplified wood product prices.

Throughout the five years to 2025, Canadian wood product prices have been heavily influenced by both demand-side and supply-side factors. Rebounding construction activity in North America, particularly following COVID-19 lockdowns, drove sudden spikes in lumber and timber input needs. Limited supply following earlier pandemic disruptions caused surges in prices, while inflationary operating costs for feedstock and transportation affected all forestry sectors. Price trends also reflected geopolitical shifts, with persistent trade uncertainty stemming from US tariffs on Canadian lumber shipments. These tariffs have required producers to seek growth in other export markets, primarily in Asia, mitigating downside risk but introducing new sources of price volatility. Interest rate hikes in 2022 raised the cost of borrowing for major projects, sustaining elevated prices as borrowers took on increased risk to finance construction, production or facility upgrades.

From 2020 to 2025, global inflation, unstable supply chains, trade disputes and shifts in construction investment played strategic roles in wood product price growth. Continued consumer activity and the critical need for wood in housing and infrastructure projects buoyed demand, even as volatility in individual months and segments persisted. Canada's ability to maintain significant production capacity and respond to export market fluctuations helped moderate the worst price swings, but did not offset the elevated pricing environment supported by supply constraints and inflation.