Global softwood lumber trade faces significant first-quarter contraction as major markets reduce imports

Published on June 1, 2026 Time: loading...

Stacks of cut logs on a conveyor belt beside a metal industrial building.

Global demand for softwood lumber weakened considerably during the first quarter of 2026, resulting in a substantial decline in import volumes across the world’s largest buying markets. New figures compiled by Lesprom Analytics show that combined imports among the ten largest softwood lumber importing countries fell by 3.9 million cubic meters between January and March, reaching a total of 12.6 million cubic meters.

The decline was largely driven by reduced purchasing activity in the United States, Germany and China. Together, these three markets accounted for the majority of the contraction, reflecting ongoing challenges within construction, housing and manufacturing sectors.

Demand remained under pressure. Construction activity slowed. Market confidence weakened.

Among all importing nations, the United States recorded the largest reduction. Import volumes declined by approximately 1.94 million cubic meters during the quarter. Several market factors contributed to the decrease, including elevated import duties on Canadian softwood products and continuing weakness within the residential construction sector.

Housing affordability remains a concern. New home sales have remained subdued. Building activity has not fully recovered.

The impact of trade measures continued to influence purchasing decisions throughout the quarter. Canadian suppliers, which traditionally account for a significant share of U.S. lumber imports, experienced the sharpest decline among exporting countries. Shipments from Canada fell by approximately 1.52 million cubic meters compared with previous levels.

The effects were felt across the industry. Profitability remained challenged. Market conditions stayed difficult.

Canadian forest products producer Canfor reported a first-quarter loss of CAD $72.5 million, citing ongoing pressures from market weakness and an effective duty burden approaching 35 percent. Company leadership acknowledged that operating conditions remained challenging across global markets during the reporting period.

Russia also experienced a significant reduction in export volumes. Shipments declined by approximately 743,000 cubic meters. Austria recorded the third-largest supplier decrease, with exports falling by about 680,000 cubic meters.

Trade flows shifted noticeably. Export competition intensified. Regional market dynamics evolved.

Germany represented the second-largest decline among importing countries. Softwood lumber imports into the country fell by approximately 1.19 million cubic meters during the first quarter. The reduction reflected continued weakness in construction activity and lower demand from building-related sectors.

While total imports contracted, significant changes occurred among supplying countries serving the German market. Traditional suppliers experienced notable declines in market share, indicating a major shift in purchasing patterns.

Austria lost substantial share. Sweden also saw declines. Finland experienced reduced market presence.

As buyers adjusted sourcing strategies, several countries increased their relative positions within the German market. Latvia recorded the largest gain, adding 10.1 percentage points of market share. Canada improved its position by 4.6 percentage points, while Brazil gained 1.2 percentage points.

Industry observers suggest that buyers increasingly favored competitive pricing and geographically efficient supply chains. Cost considerations remained important as economic uncertainty continued to influence procurement decisions.

Purchasing strategies were adjusted. Supply sources were diversified. Market participants sought flexibility.

China completed the list of the three largest import declines. The country’s softwood lumber imports fell by approximately 775,000 cubic meters during the quarter. Ongoing challenges within the construction sector continued to weigh on demand for wood products.

Property market pressures persisted throughout the period. Infrastructure activity remained uneven. Investment sentiment stayed cautious.

China’s construction sector has historically been a major consumer of imported lumber products. However, weaker building activity has reduced raw material requirements across several segments of the industry. As a result, import demand remained below previous expectations during the first three months of the year.

The broader global market reflected these conditions. Demand softened in several regions. Trade volumes declined accordingly.

Among major suppliers, Canada, Russia and Austria experienced the largest volume reductions. In contrast, only limited growth was recorded elsewhere. Belarus emerged as one of the few suppliers to register a positive movement, increasing shipments by approximately 15,700 cubic meters during the quarter.

Although this gain was relatively modest compared with overall market losses, it highlighted the uneven nature of global trade patterns. Most major exporters continued to face challenging conditions as buyers reduced purchasing activity.

The first quarter established a weaker starting point for the remainder of the year. Market participants are now closely monitoring demand trends heading into the peak Northern Hemisphere construction season. Recovery prospects will largely depend on housing activity, infrastructure investment and broader economic conditions across key importing nations.

Industry stakeholders remain cautious. Market visibility remains limited. Future demand trends are being closely watched.

With the United States, Germany and China accounting for the majority of the global decline, the softwood lumber sector faces continued uncertainty. While some regional opportunities may emerge, first-quarter results underscore the significant challenges confronting international timber trade as 2026 progresses.