Global Softwood Lumber Trade Soared 5%

SEATTLE (Scrap Monster): The latest edition of Wood Resources Quarterly suggests that global softwood lumber trade surged higher by 5% during the initial half of the current year even in the midst of global economic slowdown. Also, the Chinese lumber imports touched record high in Q2.

The lumber market recovery remained more or less muted in the U.S., mainly on account of subdued housing starts in H1 2019, as compared with the previous year. The Canadian lumber production witnessed a year-on-year decline by 9% from January to May this year. The B.C. lumber production has collapsed by 16.5%.

The demand for lumber remained strong in China. The imports soared to nearly 8 million cubic metres of lumber in the second quarter of the year, hitting new record. Out of this, nearly 5 million cubic metres of lumber supply came from Russia. The supplies from Russia surged higher by 39% from the prior quarter. Also, the import prices in June 2019 hit the lowest level since 2016.

The Middle East and Northern Africa (MENA) region saw 3% year-on-year surge in lumber imports. The import volumes by two major markets-Egypt and Saudi Arabia- were up by almost 50% when matched with Q1 last year.

The lumber demand recorded strong growth in the UK and Netherlands too.