Canadian Softwood Lumber as pictured here features tighter growth rings
         
As the cross-border trade war escalates, Canada’s softwood lumber industry has an advantage on its side that no tariff can completely erase – its product is objectively better than much of the timber harvested from U.S. forests.

Softwood supplies, especially from British Columbia and Alberta, are widely viewed as more desirable for wood framing because the growth rings are tighter than those found in lumber in the U.S. South.

It takes 70 to 100 years before spruce, pine and fir (SPF) trees are considered ripe for harvesting in the B.C. Interior. West Fraser Timber Co. Ltd., Canada’s largest softwood company, produces SPF lumber at its sawmill in the town of Smithers and other locations.

In the milder climate of the U.S. South, the growing season is much faster. It takes about 35 years before southern yellow pine (SYP) trees are harvested. SYP meets building standards and remains a popular choice because of its versatility.

Canadian producers enjoy bragging rights for the superiority of SPF, but they don’t always emphasize that because the softwood markets of Canada and the U.S. are intertwined. Production has increased at U.S. sawmills in the past decade, including at facilities owned by companies with head offices in Canada.

Canada’s secret weapon, however, is hiding in plain sight. Tighter growth rings tend to result in quality two-by-four or two-by-six SPF boards for home builders, meaning walls that will stay straight.

“Southern yellow pine has wider growth rings. Therefore, it twists more and it warps and splits more easily,” said Josh Sawatzky, owner of Madera Forest Products Inc., which is based in Acheson, Alta., located 20 kilometres west of Edmonton.

Compared with American SYP lumber, Canadian SPF is also lighter in weight.

“The durability of our product for construction is superior,” said Mr. Sawatzky, whose company remanufactures lumber into specialty products.

As part of his escalation of the trade war, U.S. President Donald Trump has repeatedly asserted that the United States has plenty of forests with timber supplies. He dismisses the role of Canadian softwood, claiming in January: “We don’t need their lumber. We have massive fields of lumber.”

The reality is that softwood production from U.S. sawmills accounts for about 70 per cent of American domestic consumption. While foreign contributions have fallen over the past decade, Canada still chips in 24 per cent and the rest is from other countries, mostly in Europe.

Only a small amount of U.S. lumber gets sold in Canada – just 0.7 per cent of American softwood production ends up north of the border. By contrast, more than 58 per cent of Canadian lumber output is sold annually in the U.S., said Vancouver-based forestry analyst Russ Taylor.

“U.S. beer is considered by Canadians to be average, pretty watery and kind of boring,” he said in an interview. “Canadian beer is premium, you might say, just like Canadian lumber is premium.”

SPF is easy to work with and often preferred for framing in home building, said Ric Slaco, an industry consultant and former chief forester at Interfor Corp.

Nails and screws go through SPF more easily than through SYP.

SPF lumber is produced in several provinces and also in the U.S. Pacific Northwest. Mr. Slaco emphasizes that both SPF and SYP are needed to meet American demand.

Benchmark prices for Western SPF have rallied 38 per cent since mid-2024, according to data compiled by Keta Kosman, publisher of Madison’s Lumber Reporter, a Vancouver-based industry newsletter.

Eastern SYP, which is cheaper for wood framing in markets in the U.S. South and is also suitable for uses such as fencing and decking, is currently selling at lower prices when compared with SPF.

“SYP is an imperfect substitute for SPF,” RBC Capital Markets analyst Matthew McKellar said in a research note.

SPF and SYP prices are still down roughly two-thirds from the record highs reached in the spring of 2021.
       
Source: theglobeandmail.com