U.S. Exports of Logs, Softwood Lumber and Pulp Hit Hard by Trade Conflict

SEATTLE (Scrap Monster): The ongoing trade war between the U.S. and China has impacted the U.S. exporters of forest products to China. The Chinese imports of forest products from the U.S. have declined sharply by almost 42% by value during the initial four months of the current year.

The cumulative imports of logs, softwood lumber and pulp by China from the U.S. totaled $600 million in Jan-Apr ’19. During the corresponding four months in 2018, the imports had totaled $1.03 billion. The imports of wood pulp and hardwood logs declined the most, the import values of which dropped significantly by $220 million and $110 million respectively, reported Wood Resources Quarterly (WRQ).

The U.S. market share of Chinese imports witnessed sharp decline by 35% year-on-year during Jan-Apr ’19. The loss of market share by U.S. wood products exporters has led to increased exports of forest products by other countries including Canada and Russia, whose market shares expanded by 12% and 4% respectively. Also, the shipments of logs and lumber from Europe have seen notable jump since the inception of trade conflict in 2018.

The Chinese import volumes of softwood logs from Canada increased by 25% over the previous year, whereas the lumber import surged higher by 54% in Jan-Apr ’19, compared with the prior year.