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Lumber supply is likely to be an ongoing issue despite falling lumber prices.

Russia's ban on forest product exports until the end of 2022 will disrupt an already strained North American market, officials and analysts reportedly told the news agency.

Threatened by rising fuel prices, demand outstripping rail capacity and other shipping problems, U.S. homebuilders are struggling to find lumber and other raw materials to complete a massive backlog of projects since last year. In early March, Russia banned exports of certain goods, such as telecommunications, medical, automobiles, agricultural, electrical and technological equipment, as well as certain forestry products, in retaliation for sanctions imposed by the West following its invasion of Ukraine.

The situation is made worse by a Russian timber export ban that could reduce U.S. lumber imports from Europe by as much as 3 percent, pushing up U.S. lumber prices. The commodity was trading at around $651.90 a thousand board feet (MBF) on Monday, more than 45 percent higher than five years ago.

About 10% of the wood consumed in Europe comes from Russia. With a ban, Europe is more likely to shift most of its production to the domestic market, drastically reducing exports to foreign markets such as the US and Canada. Paul Jannke of Forest Economic Advisors said even though most of the timber in the U.S. comes from Canada and domestically, if supply is already tight and you lose 3% of the channel, that's a big problem.

As the economy recovers from the new crown epidemic, the number of housing starts in the United States has increased and the demand for lumber has increased. The global shortage of containers has led to higher shipping costs and a surge in the price of imported lumber. The average unit price of imported wood processed products from Canada and Europe in December 2021 was about 2.1 times that of the same period last year, and domestic wood prices also rose.