Global softwood lumber trade fell 7% in 2018; Canadian exports down 5%

Wood Resources International LLC
April 22, 2019
By Wood Resources International LLC
April 22, 2019 – Global softwood lumber trade fell seven per cent in 2018, U.S. lumber prices took a roller coaster ride and China’s wood demand slowed in the 2H/18, reports the Wood Resource Quarterly.

In 2018, global trade of lumber fell for the first time in five years, with total trade down seven per cent year-over-year. The four largest importing countries, the US (down 18 per cent), China (down five per cent), the United Kingdom (down 13 per cent) and Japan (down six per cent) all imported less in 2018 than in the previous year. Much of the decline was the result of weaker economic prospects and reduced housing starts.

U.S. lumber prices have gone through a historical roller-coaster ride over the past 12 months. Random Lengths’ composite index for southern yellow pine was at $420/m3 in January 2018, peaked at $554/m3 in June and fell to $372/m3 in January 2019.

2018 softwood lumber exports from Canada were down five per cent from 2017, with the biggest decline being in shipments to China. A three-year high of 80 per cent of total exports were destined for the U.S. market in the 3Q/18 despite efforts by Canada’s lumber industry to diversify its export shipments. China’s share has fallen from 13 per cent in 2017 to 12 per cent in 2018. The average export price from Canada declined by 28 per cent this fall.

Sawmills in the Nordic countries had a very good second half of 2018 with lumber prices in the local currencies reaching their highest levels since 2007. Because of the weakening Euro and the Swedish Krona, prices in U.S. dollar terms fell to their lowest levels in almost a year, with average prices in November for Finland and Sweden being $240/m3 and $260/m3, respectively.

Global lumber, sawlog and pulpwood market reporting is included in the 56-page quarterly publication Wood Resource Quarterly (WRQ). The report, which was established in 1988 and has subscribers in over 30 countries, tracks sawlog, pulpwood, wood chip, lumber and pellet prices, trade and market developments in most key regions around the world. To subscribe to the WRQ, go to www.WoodPrices.com.

Add comment

Disclaimer
Note: By submitting your comments you acknowledge that Pulp and Paper Canada has the right to reproduce, broadcast and publicize those comments or any part thereof in any manner whatsoever. Please note that due to the volume of e-mails we receive, not all comments will be published and those that are published will not be edited. However, all will be carefully read, considered and appreciated.


Security code
Refresh

Subscription Centre

 
New Subscription
 
Already a Subscriber
 
Customer Service
 
View Digital Magazine Renew

Most Popular

We are using cookies to give you the best experience on our website. By continuing to use the site, you agree to the use of cookies. To find out more, read our Privacy Policy.