Global Timber and Wood Products Market Update

March 26, 2018

By: The Working Forest Staff

This is an excerpt from the newly released market report Wood Resource Quarterly.

 

To read the full 56-page quarterly report, please visit www.woodprices.

 

Global Lumber Trade

Trade of softwood lumber reached an all-time-high in 2017 as demand for wood was strong

in most key markets around the world. An estimated 126 million m3 of softwood lumber

was shipped from forest-rich countries such as Canada, Russia, Sweden and Finland to

markets with high consumption of lumber, including China, the US, the United Kingdom,

Japan and Germany. Since the global recession in 2008, international trade of lumber has

gone up by as much as 50%. With the economy forecasted to stay healthy in the US and

Europe in 2018, this might be another good year for lumber exporters.

 

Lumber markets – North America

US softwood lumber production in 2017 reached the highest level seen in ten years. The

biggest increase came in the southern states, but other regions of the country also had

healthy production gains year-over-year. The higher domestic production levels resulted in

decreased demand for imported lumber as US lumber consumption was up by only one

percent from 2016. The strong market for lumber in the US led to record high lumber prices

in both the US and Canada in late 2017 and early 2018.

 

Lumber markets – Northern Europe

Softwood lumber production in Finland reached a ten-year high of 11.9 million m3 in 2017.

The higher production was driven by expanding lumber exports, particularly to China.

High demand for lumber from Europe, Asia and the US in late 2017 pushed export prices

in the Nordic countries to their highest levels in almost three years.

 

Lumber markets – China

Over the past two years, prices for imported softwood lumber to China have been steadily

rising and in January 2018 reached their highest levels since March 2015. Lumber supply

from Russia and North America has generally been the lowest cost lumber imported to

China, while lumber from Chile, Sweden and Finland typically is at the higher end of the

price spectrum.

 

Russia and Canada continue to be the major suppliers, but their total market share has

shrunk from 81% in 2015 to 76% in 2017, with particularly Nordic mills increasing their

presence in this fast-growing market.

 

Lumber market – Japan

Although lumber imports to Japan fell in the 4Q/17, the total volume for the year was up

slightly for the second consecutive year. The biggest changes in supply over the past few

years have been reduced shipments from Canada and increased imports from Finland and

Sweden. Compared to most other major markets of the world, domestic and import prices

for lumber have been surprisingly stable.

 

Lumber market – Middle East/North Africa

The Middle Eastern and North African (MENA) lumber markets grew fast from 2007 to

2015, reaching a peak of imported lumber of about 11.5 million m3 in 2015. Since then,

import volumes have fallen by over 20% to an estimated nine million m3 in 2017. This

decline came as the result of financial and political uncertainties in many countries in the

region. Additionally, Finland and Sweden began redirect their sales to meet growing wood

demand in China and other European nations.

 

Your comments.

Your #1 source for forestry and forest industry news.

Built by Sofa Communications