Timber and Forest Products Industry Snapshot

Timber, Timberland, and Logging

• Timberland market deal flow remained subdued, however, one large transaction in Maine (18,900 acres) closed during the quarter for $701/acre.
• Recreational and house lot sales continue to occur, however, at lower levels than during COVID.
• Harvest weather has been very good for operations in Northern New England, largely due to dry weather conditions. The greatest disruption to logging and wood management continues to be intermittent pulpwood purchases by ME’s largest pulpwood market.
• The Canadian spruce budworm outbreak remains a complication for both landowners and markets, however, progress has been made by ME industry stakeholders, which include private landowners, government officials, and other organizations. Proactive spraying in high density areas has positively impacted spruce budworm populations. Continued management is expected in the future.

Softwood, Hardwood, and Pulpwood Markets

• The U.S.-Canada softwood lumber dispute remains unresolved. Effective August 1st, 2025, the U.S. levied new anti-dumping and countervailing duties against Canada, raising the combined duties to ~35%.
• In addition, following a months-long Section 232 investigation by the Trump Administration, a new 10% duty will be applied to all softwood lumber imports into the U.S. effective October 14, 2025. This will be additive to the existing ADD/CVD duties for Canada.
• Spruce/fir lumber pricing to regional producers declined through the quarter due to the combination of: An influx of Canadian softwood lumber imports ahead of the increased tariff rates, high lumber inventory levels at mills, wholesalers, and retail operators, continued weak housing market demand, and a stagnating job market with weak hiring and the unemployment rate ticking up to 4.3% in August.
• After the 10% tariff announcement in early October, 2x4 FOB Boston prices have rallied $10-25/mbf depending on size and grade. Futures markets have also rallied to levels slightly below those in early 2025.
• The outlook for regional pulp markets is looking brighter following the completion of SAPPI’s  new and improved paper machine #2 in Skowhegan, ME in July. The paper machine will have the capacity to produce 520,000 MT of packaging once it ramps up to full volumes in 2026. Northern New England maintains only a few large, consistent low grade/pulpwood processors and industry stakeholders continue to be supportive of new technologies and businesses to increase and diversify existing markets.
• The eastern white pine lumber market experienced stable pricing during the quarter, with demand for pine logs steady. Pine mills with diversified operations and/or value-added products continue to perform better than others.
• Hardwood lumber pricing was steady during the quarter for most species. Demand for hardwood logs remains solid as many mills continue to replenish inventory levels. Underlying demand for high grade hardwood lumber continues to be challenged due to secular and seasonal trends. As of late August 2025, annualized hardwood sawmill production has been <4,000 MMBF, or about 33% lower than two years prior. This highlights how sawmills have reduced shifts and operating percentages to align with demand, both of which impact sawmill economics.