WRQ: Global Trade of Softwood Lumber Slumped in H1 2022

SEATTLE (Scrap Monster): According to Wood Resource Quarterly (WRQ), the global trade of softwood lumber registered a year-on-year decline by almost 10% in the initial half of 2022.

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The dip in trade was mainly on account of reduced lumber demand in major markets, especially in China, the U.S. and Germany. The ban on Russian forest products trade following its invasion of Ukraine resulted in 30% year-on-year decline in Russian lumber exports during H1 2022. The exports are expected to witness further decline in the second half of the year, WRQ noted.

The North American operating rates, especially those in B.C. and Western U.S. regions, took a hit, due to fragile wood demand and declining lumber prices.

The lumber exports from Nordic countries recorded modest decline by 5% during the initial five-month period of the year. The European wood shipments to China was hit badly during this period, with Chinese imports falling by 30% in Q2, in comparison with Q1. The Chinese imports are likely to hit the lowest levels in a decade.

Meantime, the Japanese lumber import volumes surged higher by 18% in H1 2022, driven by increased imports from Finland, Sweden, Chile and Russia. It must be noted that the Japan’s lumber imports had registered sharp decline from 6.1 million cubic metre in 2017 to around 4.7 million cubic metre in 2021.