Timber and Forest Products Industry Snapshot

Timber and Logging

• Timber harvest operations were steady during winter, with the cold weather that is crucial for minimizing ground disturbance and accessing wetter soils persisting until late March after a brief warm up in February.
• Timberland owners continued to experience delivery restrictions from mills due to high inventory levels as a result of favorable logging conditions and landowners had to quickly pivot to alternatives to keep wood moving. 
• Demand for quality timberland assets remain solid and continues to support elevated timberland valuations as experienced over the past few years. Two timberland transactions greater than 20,000 acres closed in Maine during Q1 in the $800-$900/acre range.

Softwood, Hardwood, and Pulpwood Markets

• The aggressive trade policy stance of the U.S. administration has created anxiety and uncertainty in the industry, potentially altering the flow and consumption of timber across the U.S.-Canadian border. Potential exclusions and retaliatory measures are likely to impact sourcing strategies.
• Regional pulp mills saw increased timber inventories during the busy season, leading to cautious buying. However, the SAPPI mill in Skowhegan, ME is undergoing upgrades that will improve consumption, potentially increasing demand for pulpwood by the end of the year.
• Most spruce fir mills are currently experiencing high log inventories. Log pricing and demand has remained stable despite full inventories, as spruce-fir lumber prices and sales steadily improved during the quarter. Spruce fir mills are now consistently benefitting from positive EBITDA for the first time in a few years.
• The eastern white pine lumber market experienced stable pricing during the quarter, with demand for pine logs on a declining trend. Pine mills with diversified operations and/or value-added products continue to perform better than others.
• Hardwood mills have seen slight improvements in hard maple and soft maple lumber demand and pricing. Demand for yellow birch remains limited, while red oak demand is underwhelming due to alternative sources found by Asian export markets. The market for industrial logs softened due to reduced infrastructure spending under the new administration, affecting pricing competitiveness. Hardwood sawmill output for the eastern US is down 19% in 2025 Q1 compared to the prior year period.