Lumber fell to 602.62 USD/1000 board feet on June 6, 2025, down 0.40% from the previous day. Over the past month, Lumber's price has risen 11.57%, and is up 18.02% compared to the same time last year, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. Lumber - values, historical data, forecasts and news - updated on June of 2025.

The price of lumber in the United States fluctuated widely over the last five years, from a low of 240 dollars per 1,000 board feet in January 2016 to a peak of over 1,500 dollars in April 2021. This overall increase has not been linear though, with, for example, lumber prices falling by around 50 percent between June and September 2018, and again between August and October 2020. The value fell again by around 75 percent between May and August 2021. As of the end of December 2024, the price of lumber stood at 550.5 U.S. dollars per thousand board feet. Which nations are at the forefront of lumber production? The production of lumber is dependent on the availability of forest resources, market demand, and technological advances. Sustainable forest management practices a continuous supply of timber, while economic factors and construction activity drive demand. Among the countries countries with the largest production of lumber were China and the United States. Other countries with a relatively high lumber production rate were Russia, China, and Brazil.

Non-seasonal prices paid for softwood lumber in the United States have remained relatively stable since 2023, after reaching a peak in March 2022. While the price of softwood lumber in May 2021 was valued at over 581 index points, that figure dropped to 274 in September of that year. The price of softwood veneer and plywood in the United States has also followed a similar trend.

Graph and download economic data for Producer Price Index by Commodity: Lumber and Wood Products: Lumber (WPU081) from Jan 1926 to Apr 2025 about wood, commodities, PPI, inflation, price index, indexes, price, and USA.

The price of lumbe has seen both an overall increase, and large amounts of volatility since 2019. From its low in early April 2020 to its peak in May 2021, the price per 1,000 board feet of lumber increased almost sevenfold, reaching 1,670 U.S. dollars. Yet, after reaching this peak the price then fell to below 500 U.S. dollars per 1,000 board feet in August 2021 before rising again to reach over 1,000 U.S. dollars in the beginning of 2022. Since then, the price per 1,000 board feet of lumber decreased overall, reaching 576 U.S. dollars as of January 29, 2025.

The annual price growth rate of hardwood lumber in the United States fluctuated significantly between 1970 and 2024. During that time, the highest increase was observed in 2021 when hardwood lumber prices increased by 34.9 percent. The producer prices for hardwood lumber fell by 15 percent in 1975.

American lumber prices have decreased threefold, closing in on pre-COVID levels, which should drive global prices down. The change in lumber prices is largely influenced by slumping demand for real estate which became more expensive from diminished access. In Russia, the world’s largest supplier, a sharp increase in lumber exports led to a shortage in the domestic market. Attempting to hold the price growth instigated by that, the Russian government implemented 10% export duties on lumber until the end of 2021. Due to this, the main importers of Russian goods may opt for other suppliers.

United States - Wood Products: Cost of Materials was 46.32500 Bil. of Current $ in January of 2023, according to the United States Federal Reserve. Historically, United States - Wood Products: Cost of Materials reached a record high of 67.39300 in January of 2022 and a record low of 21.59800 in January of 1987. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Wood Products: Cost of Materials - last updated from the United States Federal Reserve on June of 2025.

The lumber industry has experienced significant volatility in recent years, with fluctuating prices impacting both the market and wider economy. During the pandemic, a housing boom driven by low interest rates and increased disposable income led to a surge in demand for lumber, significantly boosting mill revenues. However, prices later tumbled, affecting revenue as higher interest rates cooled the housing market and reduced demand for construction. Lumber production and shipments experienced declines, and the industry faced operating losses due to decreased demand. Looking ahead, prices are expected to rise due to tariffs on Canadian lumber imports and previous supply shortages, although high mortgage rates may still dampen demand. The ongoing trade dispute between Canada and the U.S. has resulted in increased tariffs, impacting Canadian producers who supply softwood lumber to the US market. Industry revenue is expected to rise at a CAGR of 2.6% to $51.6 billion through the end of 2025, with 2.0% growth forecast for the current year. Industry profit is expected to recover alongside rising lumber prices this year as well. The US housing market plays a crucial role in the lumber industry by driving demand for wooden materials used in construction and renovation. Despite past challenges with high interest rates and elevated home prices hurting residential investments and reducing lumber demand, there is optimism that the recent Federal Reserve rate will eventually translate to lower mortgage rates, potentially rejuvenating the housing market and building material demand. Even with these promising signs, a significant affordability barrier remains as home prices continue to overshadow median incomes, discouraging many first-time buyers and thus impeding growth in the housing market, impacting lumber demand negatively. The industry is also dealing with profitability challenges due to high costs and declining lumber prices, which have led to sawmill closures and under-utilization of capacities, emphasizing the importance of operational efficiency. As a response, the industry is likely to see consolidation within domestic mill operations to maintain profitability amid market fluctuations. A notable development in the sector is the growth of the cross-laminated timber (CLT) specialist subsector, which promises a boom, supported by innovations in fire retardant technology and approvals for new timber certifications, like eastern hemlock trees, broadening opportunities for sustainable construction. Revenue is expected to increase at a CAGR of 1.6% to $55.9 billion through the end of 2030.

Throughout the timeline, hard sawn wood has had higher prices than any other type of timber. In 2023, its price amounted to 678 U.S. dollars per cubic meter, which is twice higher than that of hard timber logs. During that period, hard logs were the cheapest type of timber at approximately 212 U.S. dollars per cubic meter. Meanwhile, lumber prices in the U.S. have fluctuated a lot since February 2020.

Graph and download economic data for Producer Price Index by Industry: Sawmills: Softwood Lumber, Made in Sawmills (PCU3211133211133) from Dec 2003 to Apr 2025 about sawmills, wood, PPI, industry, inflation, price index, indexes, price, and USA.

Lumber Market Outlook 2032

The global lumber market size was USD 337.8 Billion in 2023 and is projected to reach USD 425.4 Billion by 2032, expanding at a CAGR of 3.3% during 2024–2032. The market growth is attributed to the growing infrastructure investments across the globe.



Rising infrastructure investments is a significant driver of the lumber market. Governments and private entities across the globe are making substantial investments in infrastructure development. This includes the construction of public facilities, commercial spaces, and residential complexes. Such development activities lead to a high demand for lumber, given its versatility and strength-to-weight ratio. Additionally, advancements in engineered wood products have further increased the use of lumber in structural applications, driving the lumber market.

Impact of Artificial Intelligence (AI) in Lumber Market

Artificial Intelligence has a significant impact on lumber market, by enhancing efficiency, accuracy, and productivity. The integration of AI in lumber operations has led to the development of smart sawmills that utilize machine learning algorithms to optimize the cutting of logs, thereby reducing waste and increasing yield. AI-powered drones and satellite imagery are now used for forest management, enabling precise inventory tracking and health assessment of trees.



AI has revolutionized supply chain management in the lumber industry, facilitating real-time tracking, predictive analytics for demand forecasting, and automated decision-making processes. This has resulted in reduced operational costs, improved customer service, and increased profitability. Furthermore, AI-driven predictive maintenance systems have been instrumental in minimizing equipment downtime, thus boosting overall productivity. The advent of AI has undeniably reshaped the lumber market, driving sustainability and growth.

Lumber Market Dynamics

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United States - Producer Price Index by Commodity: Lumber and Wood Products: Plywood was 274.21700 Index 1982=100 in April of 2025, according to the United States Federal Reserve. Historically, United States - Producer Price Index by Commodity: Lumber and Wood Products: Plywood reached a record high of 471.30000 in June of 2021 and a record low of 42.00000 in November of 1966. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Producer Price Index by Commodity: Lumber and Wood Products: Plywood - last updated from the United States Federal Reserve on May of 2025.

United States PPI: Weights: Lumber & Wood (LW) data was reported at 1.725 % in 2024. This records a decrease from the previous number of 1.728 % for 2023. United States PPI: Weights: Lumber & Wood (LW) data is updated yearly, averaging 1.728 % from Dec 2007 (Median) to 2024, with 18 observations. The data reached an all-time high of 1.993 % in 2015 and a record low of 1.541 % in 2018. United States PPI: Weights: Lumber & Wood (LW) data remains active status in CEIC and is reported by U.S. Bureau of Labor Statistics. The data is categorized under Global Database’s United States – Table US.I064: Producer Price Index: by Commodities: Weights.

United States PPI: LW: Lumber: Hardwood data was reported at 228.600 1982=100 in Oct 2018. This records an increase from the previous number of 225.800 1982=100 for Sep 2018. United States PPI: LW: Lumber: Hardwood data is updated monthly, averaging 101.200 1982=100 from Jan 1947 (Median) to Oct 2018, with 862 observations. The data reached an all-time high of 247.500 1982=100 in Jun 2014 and a record low of 24.300 1982=100 in Jan 1947. United States PPI: LW: Lumber: Hardwood data remains active status in CEIC and is reported by Bureau of Labor Statistics. The data is categorized under Global Database’s USA – Table US.I017: Producer Price Index: By Commodities.

The cost of manufacturing softwood veneer and plywood has fluctuated significantly during the past years in the United States, with its index value falling to 301.5 in August 2024. The price of this product peaked in June 2021 at 702.5, only to fall to 302 in September of that year. 1982 is the date used as a reference point, in which the index value was fixed at 100.

United States PPI: LW: Lumber: Hardwood: Flooring data was reported at 188.400 Jun1984=100 in Sep 2018. This records an increase from the previous number of 188.000 Jun1984=100 for Aug 2018. United States PPI: LW: Lumber: Hardwood: Flooring data is updated monthly, averaging 149.500 Jun1984=100 from Jun 1984 (Median) to Sep 2018, with 412 observations. The data reached an all-time high of 201.500 Jun1984=100 in Oct 2014 and a record low of 95.800 Jun1984=100 in Jan 1986. United States PPI: LW: Lumber: Hardwood: Flooring data remains active status in CEIC and is reported by Bureau of Labor Statistics. The data is categorized under Global Database’s USA – Table US.I017: Producer Price Index: By Commodities.

Graph and download economic data for Producer Price Index by Commodity: Lumber and Wood Products: Softwood Lumber (WPU0811) from Jan 1947 to Apr 2025 about wood, commodities, PPI, inflation, price index, indexes, price, and USA.

The industry has faced global lumber price volatility, creating challenging conditions for wholesalers and downstream clients like construction contractors, home improvement stores and hardware stores. In 2021 and 2022, the price of lumber soared globally as demand for new construction soared, especially in the United States. While exports and imports are not tracked at a wholesale level, many companies do sell across the border; as a result, conditions in the United States affect revenue. However, construction activity has since slowed, tempering demand from downstream markets. With industry revenue forecast to decline 0.2% in 2024 alone, the overall industry is expected to expand at a CAGR of 1.8% to $15.6 billion over the five years to 2024. The fate of wholesalers has largely been tied to the volatility of downstream construction markets. The COVID-19 pandemic supercharged demand, especially as the Federal Reserve lowered interest rates to stimulate the housing market in the United States. However, construction activity has since been pressured as the Federal Reserve and the Bank of Canada have raised interest rates to combat inflation, contributing to the sharp decline in lumber prices. In 2024, the Bank of Canada began to cut rates, and the Federal Reserve is set to follow suit. Cumulatively, volatile lumber demand, seesawing prices and the imposition of duties have driven down profit margins across the industry. Lumber wholesalers are expected to see growth moving forward. Currently heightened interest rates are expected to be gradually cut over the coming years, stimulating demand from downstream construction markets. In tandem, the selling price of lumber is expected to climb, though it will not likely see the rampant inflation of recent years. Consequently, industry revenue is forecast to expand at a CAGR of 2.1% to $17.3 billion over the five years to 2029.

This statistic displays the average price for wood used for pellet mills in 2016, broken down by region. In that year, the average wood price for pellet mills amounted to some 92.5 U.S. dollars per oven-dry ton in Eastern Canada.