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Rubber and Wood September 18, 2015 09:30:33 AM

Softwood lumber prices fell the most in the US, Canada and Nordic countries during 2Q/15

Paul Ploumis
ScrapMonster Author
Softwood lumber prices reported sharpest declines in the US, Canada and Nordic countries, says the latest issue of Wood Resources Quarterly (WRQ).
Softwood lumber prices fell the most in the US, Canada and Nordic countries during 2Q/15

SEATTLE (Scrap Monster): The latest issue of Wood Resource Quarterly states that global softwood lumber prices have declined in most major markets during the second quarter of the current year. The biggest declines were reported in the US, Canada and Nordic countries. The rising strength in US Dollar, weakening demand and ample supply are the key contributors to fall in lumber prices, WRQ noted.

In the US, lumber production increased during Q2 2015, when compared with the previous quarter. The drop in lumber demand from China and lower-than-expected domestic demand growth from domestic housing sector led to sharp decline in lumber prices in the US and Canada.

Among Northern European countries, Finland and Sweden recorded increased export volumes during the initial five-month period of the year. Despite higher export volumes, the softwood lumber export prices saw decline during this period.

The Russian lumber export prices dropped considerably during the quarter. The export prices to Japan, Egypt and CIS countries saw biggest decline. However, export volumes have not jumped significantly, in accordance with the fall in prices. The export volumes were higher only by around 3% over the previous year.

The slowdown in Japanese housing industry resulted in many domestic mills reducing their lumber output during the quarter. The production by domestic sawmills has dropped nearly 8% till date this year. The country’s lumber import volumes have plunged by 11% during this period. The prices almost touched seven-year low during summer.

Lumber import volumes by China declined nearly 14% in July ’15 when compared with the previous year. The import volumes had touched two-year low in February this year. The average import prices in the country are at three-year lows currently.

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