Lumber futures hit a 2026 low as West Fraser idles an Alabama OSB mill and an Arkansas sawmill

That compares with $539.50 when September ended and a high of $695.50 in August 2025, Wood Central reported. Census Bureau figures released the same day put September new home sales at a 676,000 annual pace, 5.3% below a year earlier. Commodities columnist Andrew Hecht expects futures to test $500 this winter.

West Fraser announced the curtailments on Oct. 28 alongside a third-quarter net loss of $80 million on sales of $1.363 billion. The two mills take 500 million square feet of OSB (3/8-inch basis) and 225 million board feet of southern yellow pine out of the company's annual capacity. Both shut down in the fourth quarter after wind-downs, and West Fraser expects a $200 million to $220 million impairment charge.

CEO Sean McLaren blamed housing affordability and said the company sees no near-term improvement in demand. West Fraser now expects 2026 lumber and North American OSB shipments at the low end of its guidance. It also said higher diesel prices have added about $15 per thousand board feet to its lumber costs since January.

Canadian lumber still pays a 10% Section 232 tariff on top of softwood duties. Wood Central reported that the Commerce Department cut the combined duty for most Canadian producers to 24.75% this month. West Fraser said its lumber and OSB shipments to the US are not covered by the 50% Section 338 tariffs on some Canadian goods.