Softwood Lumber Trade Topped All-Time Record High in 2017

SEATTLE (Scrap Monster):  The continued rise in demand for wood in major markets including the US, China and Europe took global softwood lumber trade to record height in 2017. According to Wood Resources Quarterly (WRQ) Report, nearly 126 million cubic metre of softwood lumber was shipped from forest-rich countries to key market destinations during the year. When compared with 2008 levels, the trade of softwood lumber has surged higher by almost 50%, the report said.

The US softwood lumber production during the previous year hit the highest level in ten years, aided by major production boost from southern states. The domestic lumber consumption by the country was up marginally by 1% in 2017. The strong market resulted in record lumber prices in the US and Canada towards the end of the year.

The dramatic jump in lumber export orders to China boosted Finland’s production to 11.9 million cubic metre, the highest level in almost ten years. The export prices in the Nordic countries rose sharply during end-2017, mainly on account of huge demand from Europe, Asia and the US.

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According to WRQ Report, average import price of softwood lumber by China registered steady growth in 2017. The key suppliers to China were Russia and Canada. However, the combined market share of these countries has declined to 76% in 2017, as compared with the market share of 81% in 2015. The lumber import volumes by Japan witnessed marginal improvement in 2017. However, the imports recorded sharp decline in Q4 last year, due to huge reduction in lumber shipments from Canada. The domestic and import prices in by Japan remained more or less stable.

The Middle East and North African (MENA) region imported approximately 9 million cubic metre of lumber in 2017, significantly down by 20% when matched with 2015 peak. The decline is due to ongoing financial and political uncertainties in many countries in the region.