U.S. Lumber Markets Remained Buoyant in Q3 2020

SEATTLE (Scrap Monster): The U.S. lumber markets remained buoyant in third quarter of 2020. The prices surged higher to touch unprecedentedly high levels. Southern pine prices have surged higher by almost 160% during the period from April to September in 2020. Also, Douglas-fir lumber prices have almost doubled in the western region.

The surge in domestic demand for lumber coupled with ongoing trade dispute with China led to significant decline in softwood lumber exports in 2019 and 2020. The exports during the first three quarters of 2020 recorded year-on-year decline by 17%, said the latest report published by the Wood Resources Quarterly (WRQ). The cumulative yearly shipments for 2020 are predicted to touch lowest level of the decade.

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The Canadian lumber exports too witnessed notable decline during the previous year. The initial nine-month data suggests year-on-year decline of almost 10%, with most of the decline occurring in the initial half of the year. The total sales in Q3 picked up, when compared with the prior quarters. The shipment volumes during the quarter nearly equalled Q3 ’19 levels, the report said.

The high lumber prices in the U.S. domestic market lifted the prices of Canadian exports. The average export prices of Canadian lumber skyrocketed by 94% during the month of September last year.