North American Sawmill Profits Hit 13-Year Peak, Says WRQ Report

Six out of the ten largest lumber exporters reported increased shipments during early-2018.

SEATTLE (Scrap Monster): The Wood Resources Quarterly Report published by Wood Resources International states that profits for sawmills in North America surged higher during Q2 this year to touch the highest level since 2005. The gross margins by mills in Nordic region hit the highest level in almost four years, whereas mill margins in other parts of the continent hit decade-high levels.

The worldwide lumber trade flourished in 2Q/18. Six out of the ten largest lumber exporters reported increased shipments during early-2018. The Russian supplies to China hit new record during the quarter. The Chinese imports from the U.S. and Europe declined. The softwood lumber import volumes to Japan totaled 1.6 million cubic metre, higher by 6.7% over the prior quarter. Meantime, lumber exports from Finland dropped by 3.5% during the initial four months of 2018.

The Global Sawlog Price Index (GSPI) declined marginally by 1.4% in Q2 ’18, registering the first ever quarter-on-quarter decline since Q4 ’16. Sawlog prices dropped on all continents except for North America. The Global Softwood Fiber Price Index (SFPI) witnessed slight decline over the prior quarter. Notable price decline for softwood fiber was reported in Brazil, Russia, Sweden and New Zealand.

The Global Hardwood Fiber Price Index (HFPI) remained practically unchanged in Q2, as compared with Q1 ’18.

• U.S. Paper Recycling Industry Set to Expand at 3.0% CAGR on Strong Domestic Fiber Demand
• U.S. Commerce Department Begins Review of Canadian Softwood Lumber Tariffs
• Canada's Canfor reports Q4 operating loss due to lumber tariffs
• Smurfit Westrock Bolsters Ecuador Operations Through Cartomanabí Acquisition