Softwood Lumber Outlook Dec 2025

Welcome to an exclusive December 2025 edition of the Softwood Lumber Outlook, your trusted source for long-term market intelligence. This month, Fastmarkets presents an exclusive video forecast from our senior economist, offering expert commentary on the latest market shifts, pricing trends, and strategic considerations for the year ahead.

Exclusive Lumber Outlook
Gain unique insights from Dustin Jalbert’s December forecast video, where he breaks down the latest market commentary and what it means for your business. This exclusive content is available only to Fastmarkets’ long-term forecast customers and covers:
  • The impact of tariffs and duties on pricing and supply chain planning
  • The anticipated demand rebound in 2026 and how to position your purchasing strategy
  • Key signals to watch in R&R trends and housing starts
  • How to leverage Fastmarkets’ data for competitive advantage
Watch the exclusive recording of our December forecast
Key Highlights from December’s Outlook:

Tariffs & pricing:

New Section 232 tariffs (10%, stacked on 35% Canadian duties) are reshaping North American lumber markets, with volatility expected to persist into 2028/2029. Canadian mills face continued financial stress, though some duty relief is anticipated in late 2026.

2025 saw weaker-than-expected demand and rising inventories, but a rebound is forecast for 2026 as US housing starts and repair/remodeling (R&R) activity improve.

Supply & capacity:

Southern Yellow Pine (SYP) remains discounted due to oversupply, but this gap should narrow as demand recovers. Sawmill capacity growth is slowing, with further rationalization expected, especially in British Columbia.

Market outlook:

Despite near-term headwinds, easing interest rates and reduced trade uncertainty should support a mild recovery. Prices are expected to appreciate in the low single digits for most dimensional items.

Strategic insights:

Fastmarkets’ data and forecasts are essential for navigating ongoing volatility, planning inventory, and identifying opportunities as the market rebalances.

Stay Ahead with Fastmarkets
For tailored insights or to discuss how these trends affect your business segment, contact your Fastmarkets account manager or explore our latest data tools and market reports.