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Moreover, China, which accounts for 20% of U.S. lumber exports, is also seeing higher demand as Beijing enacts stimulative measures to bolster growth.

China has cut rates three times over the past six months to counter act signs of slowing economic activity, along with a slowdown in the country’s property market. However, analysts and investors anticipate Chinese lumber demand to rebound in the months ahead as the interest rate cuts and lower borrowing costs help revive construction.

“We expect to see higher exports [of North American lumber to China], which means some of that supply will be taken away,” Paul Jannke, a principal with consulting firm Forest Economic Advisors LLC, said in the WSJ article.

Guggenheim Timber ETF

For more information on the lumber industry, visit our timber category.

Max Chen contributed to this article.