Global Timber and Wood Products Market Update

July 3, 2019

By: The Working Forest Staff

China’s imports of US forest products fell by 430 million dollars in the

first four months of 2019. The US market share fell by 35%, while

Canadian and Russian exporters have increased their shares since 2018,

reports the Wood Resource Quarterly

The flow of lumber, logs and pulp from the US to China has fallen sharply since the US

government initiated tariffs on Chinese imports to the US in May of 2018. In the first four

months of 2019, China’s imports of US forest products were down 43% from the same

period in 2018.

Seattle, USA. The trade war between the US and China has not only resulted in higher

costs for US consumers on home appliances, electronics, apparel, footwear, and industrial

machinery, but has also impacted US exporters of forest products to China. China’s

economy slowed during 2018 and early 2019, causing the total value of imported wood

pulp, lumber and logs to decline by just over 10% from the first four months of 2018 to the

same period in 2019, reports the WRQ. Simultaneously, forest product imports from the

US fell by almost 42% in value.

From January to April 2019, China imported logs, softwood lumber, and pulp from the

US collectively valued at 600 million dollars. This is down from $1.03 billion dollars’

worth of forest products imported during the same period in 2018. The biggest declines in

import value of US forest products from the 1Q/18 to the 1Q/19 have been those of wood

pulp and hardwood logs, falling $220 million and $110 million, respectively.

With forest product imports from the US deteriorating and American wood product

exporters losing market shares in the Chinese market, imports from other countries,

including Canada and Russia, have fallen less or even expanded the past year. While the

US market share for forest products imports has fallen by 35% from the first four months

of 2018 to the same period in 2019, Canada’s and Russia’s shares have gone up by 12%

and 4%, respectively.

Supply of softwood logs and lumber from Canada, in particular, has increased in 2019,

with import volumes of logs increasing 25% year-over-year, and lumber imports increasing

54% in early 2019 as compared to early 2018. In addition, there has also been a rise in

shipments of both logs and lumber from Europe since the trade conflict started in the

summer of 2018.

Even if the trade negotiations between the US and China result in lower or eliminated tariffs

in the future, the new supply sources that Chinese forest products importers have developed

during the on-going trade dispute will likely remain, permanently changing historic trade

flows to China.

Global lumber, sawlog and pulpwood market reporting is included in the 56-page quarterly

publication Wood Resource Quarterly (WRQ). The report, which was established in 1988 and

has subscribers in over 30 countries, tracks sawlog, pulpwood, wood chip, lumber and pellet

prices, trade and market developments in most key regions around the world.

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