U.S. Softwood Lumber Output in 2017 Hit Highest Level in Ten Years

SEATTLE (Scrap Monster): The latest edition of the Wood Resource Quarterly states that the U.S. lumber production in 2017 surged to the highest level in ten years. The production from the Southern states reported significant jump during the year. The lumber prices in the US and Canada touched new records towards end-2017, thanks to considerable uptick in market demand for lumber products.

The Global Sawlog Price Index (GSPI) recorded fourth consecutive year of increase. The GSPI was up by 1% to $76.34 per cubic metre in Q4 ’17. The Index was up sharply by 9.8% for the whole previous year. Elsewhere in the world, Eastern Europe, the Nordic countries and Western North America reported the biggest growth in sawlog prices. Meantime, the European Sawlog Price Index (ESPI) declined by 1.2% over the previous quarter.

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Pulp manufacturers across the world saw increased wood costs during the previous year. The Global Softwood Fiber Price Index (SFPI) registered third consecutive year of rise. The wood fiber prices recorded notable increase in Western Canada, Sweden, Spain and Russia. The Hardwood Fiber Price Index (HFPI) too touched the highest level in three years during the last quarter of 2017.

The total pulp production in 2017 has surpassed 53 million tons, higher by 3.2% over 2016. The Western Europe region recorded 5.1% jump in pulp output.

The softwood lumber trade reached an all-time high in 2017. The lumber shipments from primary producing countries- Canada, Russia, Sweden and Finland to key lumber consumer markets was estimated at 126 milion cubic metre. The Finnish softwood lumber production touched decade high in 2017. Chinese lumber imports reported steady growth. The lumber import volumes by the Middle Eastern and North African (MENA) region countries dropped considerably in 2017.

Meantime, the global trade of wood pellets grew substantially during the year to total 18.3 million tons in 2017.