Lumber prices hovered near $550 per thousand board feet, as investors tempered expectations for Federal Reserve rate cuts in 2025. While U.S. pending home sales rose 2.2% month-over-month in November, driven by recalibrated mortgage rate expectations and improved inventory, the demand rebound has yet to significantly boost lumber prices. The U.S. Department of Commerce’s tariff increase to 14.4% on Canadian lumber remains a key factor, with shipments to the U.S. slowing due to weak market conditions. Global economic uncertainties and reduced construction activity in major regions have further suppressed demand. Additionally, the shift to alternative materials and lower production costs in the U.S. South has reshaped the supply landscape, diminishing Canadian producers' market share. Combined with subdued speculative activity, these factors continue to weigh on prices, despite the potential for long-term shifts driven by tariffs and trade disputes.
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