The number of new homes – which account for 75% of demand for US softwood – has fallen nearly 305 in the last year, with a knock-on effect on prices.
Mills in the south of the country, which produces around a third of US softwood, are cutting back operations, while production in western sawmills has dropped 6% in the first nine months of the year – with further falls expected.
According to specialist softwood newsletter Random Lengths, prices for structural panels are down 27% from a year ago, while other types of timber have seen large declines.
In response to a number of factors, including international competition and the poor housing market, the US Forest Service said contracts to cut federal timber could be extended for one year.
The extension is designed to minimise contract defaults and mill shutdowns while prices are low.
