Conifex to Curtail Operations at Its Mackenzie, BC, Sawmill for Four Weeks

On Friday, Conifex Timber said it will temporarily curtail operations at its Mackenzie, BC, sawmill for a planned four-week period beginning December 15. The company cited continued weakness in North American lumber markets.

According to the announcement, benchmark Western SPF prices have fallen sharply in recent months amid slower new residential construction, soft repair-and-remodel activity, elevated interest rates, and the impact of recently increased countervailing and anti-dumping duties on Canadian softwood lumber shipped to the US. Conifex said the duty increases have compressed cash margins across the sector and pushed many producers into operating losses.

Against this backdrop, the company said a temporary reduction in production is the most prudent step to limit losses. The curtailment is expected to reduce Conifex’s output by roughly 13 million board feet.

Conifex noted that while near-term conditions remain difficult, it believes medium- and long-term fundamentals for SPF lumber remain positive. The company cited structural housing undersupply in the US, an aging housing stock, and improving affordability conditions as interest rates normalize are expected to support a gradual recovery in demand beginning in the second half of 2026.

Industry-wide curtailments have already pushed North American lumber production to its lowest level in a decade, a trend Conifex expects will help rebalance inventories and stabilize pricing.