Quarterly results from Interfor, Canfor and West Fraser show that North American lumber markets improved during the first quarter of 2026 as benchmark prices rebounded following curtailments and reduced supply in late 2025. However, Canadian producers continued to face heavy pressure from U.S. duties, fibre shortages and weak conditions in some export markets.<\/p>\n
Interfor recorded a net loss of USD 63 million in Q1 2026, compared with a USD 105 million loss in the previous quarter. Adjusted EBITDA reached USD 31 million on sales of USD 643 million, while the company\u2019s average lumber selling price increased to USD 666\/mbf.<\/p>\n
Lumber production totaled 856 million board feet, up from 753 million board feet in Q4 2025, as operating rates increased at the company\u2019s U.S. Northwest and British Columbia mills. Production reached 408 million board feet in the U.S. South, 111 million board feet in the U.S. Northwest, 177 million board feet in Eastern Canada and 160 million board feet in British Columbia.<\/p>\n
Interfor said benchmark lumber prices rose significantly between the end of December 2025 and the end of April 2026. The SYP Composite increased by USD 118\/mbf, KD H-F Stud 2x4 9\u2019 prices rose USD 103\/mbf, the Western SPF Composite gained USD 82\/mbf and the Eastern SPF Composite increased USD 66\/mbf.<\/p>\n
Despite improving prices, the company continued adjusting capacity in Eastern Canada. Interfor indefinitely curtailed its Ear Falls sawmill in Ontario during the quarter and later curtailed operations at the Nairn and Gogama sawmills in April.<\/p>\n
Canfor also reported improved results quarter-over-quarter, although the company remained loss-making. Western SPF benchmark prices averaged CAD 635\/mbf during Q1, up CAD 46 from the previous quarter, while Southern Yellow Pine prices recovered sharply. Canfor increased both Western SPF and U.S. South production during the quarter as market conditions stabilised.<\/p>\n
The company said Asian export markets remained difficult, particularly China, where weak housing activity continued to pressure lumber demand. European lumber markets also remained soft for much of the quarter, although spruce prices began recovering later in the period after production curtailments reduced supply.<\/p>\n
West Fraser similarly reported better benchmark pricing and stronger seasonal demand, especially in Southern Yellow Pine markets. Western SPF 2x4 prices averaged USD 463\/mbf during the quarter, up 9% quarter-over-quarter, while Westside SYP 2x4 prices increased 35% to USD 436\/mbf.<\/p>\n
However, duties on Canadian lumber exports to the United States remained one of the biggest issues across the sector. Interfor said preliminary combined anti-dumping and countervailing duty rates for the latest administrative review reached around 25%, and the company expects an additional non-cash duty-related expense of approximately USD 73 million in the second half of 2026.<\/p>\n
West Fraser and Canfor also continued to report substantial duty-related costs, with combined duties on Canadian lumber shipments to the United States now approaching 45% in some cases.<\/p>\n
The quarterly results also highlighted the structural advantage of the U.S. South compared with British Columbia operations. Producers continued benefiting from lower fibre costs and more stable operating conditions in the southern United States, while B.C. mills remained under pressure from high log costs, wildfire impacts and long-term fibre shortages.<\/p>","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":98759,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204],"tags":[],"class_list":["post-98758","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news"],"acf":[],"yoast_head":"\n