International Markets

Softwood Lumber, Logs and Panels

The slow down in housing demand in Japan continued and lack of immediate need for construction lumber both contributed to a slower start to the year for J-grade lumber exporters. This trend persisted from February through the end of March and the latest outbreak of conflict in the Middle East only exacerbated the gritty market conditions. Exports of Douglas Fir lumber to Japan were down 51% and log exports dipped 31%.

Softwood lumber markets across much of Europe were mild due to log costs and general lack of an end-user demand. Lumber produced in the Nordic state made up most of the EU’s production, with the greatest volume of exports headed to Germany. E.U. economic experts expect the German economy to grow in the nex year, spurring on more demand.

Lumber shipments from the U.S. reached Syria in November, marking the first of such shipments since 2004. The Southern Yellow Pine industry was expected to play a key role in the rebuilding of Syria after its decade-long civil war. The World Bank is estimating the cost of rebuilding will be around $216 billion. 

Hardwood Lumber and Logs

Hardwood importers opened the year with an unexpected announcement from the White House of a delay in increases for duties under the Section 232, which were implemented in September of 2025 but will be suspended until November of 2027. Initially, the finding recommendatons included a 10% tariff on imported softwood logs and lumber and additional 25% duties on imported hardwood products including cabinets, upholstered furniture and components. This was largely received as a positive action by companies that specialize in the sale of imported tropical hardwoods.   

China came under particular scrutiny from the US Department of Commerce, with findings determining that certain hardwood products were being dumped into the US markets at an estimated 81% below production cost. Similarly, The European Union commission on trade and commerce found that hardwood plywood being imported from China was being dumped at 86% below production cost.   

Economic shockwaves caused by the conflict in Iran were felt almost immediately in the global hardwood trade industry as shipping costs skyrocketed. Fuel, surcharges and logistical complications have lead to a supply chain lurch, not unlike what was experienced during the COVID pandemic.

Demand for Spanish Cedar and Jatoba lumber kept their downward trend. Ipe demand remained seasonally low, which is normal for this time of year. Concerns regarding inventory shortages during decking season began to arise as lumber suppliers remain unsettled about the potential delays due to increased shipping and logistical costs.