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In 2018, overseas supply of softwood lumber to the US reached a 11-year high
Hakan Ekstrom
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.
Hakan Ekstrom
With the tight wood fiber supply in the US South, wood chip and pulplog prices in the 1Q/19 reached their highest levels in almost seven years in both in the South Central and Southeastern states.
Hakan Ekstrom
Demand for imported pellets in Japan and South Korea continued a three-year growth trend to reach record highs in the 4Q/18.
Hakan Ekstrom
In late 2018, gross margins for sawmills in North America fell while they were fairly stable in Europe and Russia.
Hakan Ekstrom
Pulpmills in some of the major hardwood pulp-producing regions in the world, including China, Finland, Indonesia and Spain, have seen their fiber costs go up between 10-30% the past two years.
Håkan Ekström
New Zealand has increased its market share from 30% to 44% of the total softwood log imports to China in just three years. While Canada and Russia have reduced log shipments the past few years, other smaller log suppliers including Japan, Poland, Chile and South Africa have expanded shipments.
Hakan Ekstrom
US lumber prices have gone through a historical roller-coaster ride over the past 12 months, falling 33% from June 2018 to January 2018.
Hakan Ekstrom
The limited price improvements over the past few years, oversupply of pine pulplogs, and potentially more attractive land-use alternatives in the agricultural sector, have led some landowners in Brazil to choose to plant agricultural crops rather than trees
Hakan Ekstrom
A gloomier outlook by Chinese consumers and a shortage of credits for many provincial governments and state-run firms have contributed to reduced demand for forest products
Hakan Ekstrom
Shipments of hardwood chips from Australia, the second largest chip supplier to China, have also increased over the past year but at a much more modest pace than shipments from Vietnam.
Hakan Ekstrom
Wood chip prices in western Canada and western US have gone up 25% from 3Q/17 to 3Q/18, the biggest in crease in North America.
Hakan Ekstrom
The timber harvests on public lands in British Columbia are set to decline over the next decade and uncertainty surrounds log availability in the eastern provinces.
Håkan Ekström
Sawlog prices in Russia and Eastern Europe have fallen in 2018 following a year of increases.
Håkan Ekström
The Global Softwood Fiber Price Index fell in the 2Q/18 but was still almost 8% higher the in the 2Q/17.
Hakan Ekstrom
Chinese importers have gradually shifted their historical preference for logs away from the Russian Federation towards New Zealand and instead are importing softwood lumber from their forest-rich neighbor in the north.
Håkan Ekström
• Softwood lumber prices were substantially higher in North America, Europe and China in the 2Q/18 as compared to the same quarter in 2017.
Hakan Ekstrom
Gross margins for sawmills in the Nordic countries were close to the highest they have been in over four years in the 2Q/18, while they reached levels not seen in more than a decade in other parts of Europe
Håkan Ekström
Softwood and hardwood log imports to Sweden up 25% and 70%, respectively in early 2018 as compared to early 2017.
Hakan Ekstrom
The US Pellet Feedstock Price Index fell 3.0% from 1Q/17 to 1Q/18 because of lower usage of costly roundwood
Hakan Ekstrom
The Global Hardwood Fiber Price Index reached the highest level in three years in the 1Q/18
Hakan Ekstrom
It is expected that US softwood lumber supply sources will shift to meet future increase in US lumber demand. Factors influencing these shifts include changes in availability of timber supply, prices of sawlogs, competitiveness of lumber producers, exchange rates and developments in alternative markets for lumber producers in Canada and overseas.
Hakan Ekstrom
• After softwood lumber consumption in the US reached a ten-year high in 2017, demand fell in early 2018. Despite the reduced consumption, lumber production on the US west coast jumped by over nine percent y-o-y in the 1Q/18 thanks to strong demand for lumber from China during the past year.
Hakan Ekstrom
Tights fiber supply in British Columbia and the US Northwest pushed chip prices up over 12% in the 1Q/18
Håkan Ekström
Lumber imports from Russia to China has doubled the past five years, while North American supply has been in decline.
Hakan Ekstrom
Changes in availability of timber supply, prices of sawlogs, competitiveness of lumber producers are some factors that are likely to shift future lumber supply sources to meet higher demand in the US.
Hakan Ekstrom
By far the biggest sawlog price increases in Europe in 2017 (in Euro-terms), was in Eastern Europe, where demand for sawlogs increased as lumber production rose.
Hakan Ekstrom
Strong demand and tight supply of wood fiber in Sweden resulted in increased wood chip imports in late 2017
Hakan Ekstrom
The Global Softwood Fiber Price Index (SFPI) increased 4.0% during 2017 mainly because of higher pulpwood prices in Western North America, Europe, Russia and Australia
Hakan Ekstrom
US softwood lumber consumption likely to reach record high by 2030 resulting in higher imports from Europe and Latin America
Hakan Ekstrom
Global softwood lumber trade reached an all-time high in 2017 during the 1H/17 and lumber prices have continued to move upward in most men markets around the world.
Hakan Ekstrom
Changes in availability of timber resources and forecasted increases in wood raw-material costs for sawmills around the world are likely to impact the trade of softwood lumber to the US in the future.
Hakan Ekstrom
The Global Sawlog Price Index (GSPI) has gone up for three consecutive quarter to reach a three-year high in the 3Q/17
Hakan Ekstrom
The Russian sawmilling sector continues to add capacity in Siberia and the Far East, targeting the expanding demand for lumber in China. Just during the first eight months of this year, Russia increased shipments to China by 23% as compared to the same period in 2016. Although Russian lumber prices have not changed much in Ruble terms over the past two years, there has been a steady increase in export prices as measured in US dollars.
Hakan Ekstrom
The increased competition for small-diameter logs has resulted in a dwindling supply of traditional pulplogs normally available for pulpmills
Hakan Ekstrom
The biggest increases in chip supply to Japan and China year-over-year have been from Chile and Indonesia.
Hakan Ekstrom
With price premiums surging in the export market, Australia's log exports reach record levels in 2017.
Hakan Ekstrom
Production cost margin for sawmills in the US South increased during much of 2016 and 2017 and reached its second highest level in 13 years in the 2Q/17.
Hakan Ekstrom
Hakan Ekstrom
In Finland, Russian and Brazil log costs have gone up faster than lumber prices resulting in reduce profit margins the past 18 months.
Lumber prices in both the US and Canada have trended upward for almost two years and reached 13-year highs in July. One exception has been pine lumber prices in the US South, which have fallen the past few months to the lowest level seen in almost a year.
Hakan Ekstrom
Hakan Ekstrom
Wood fiber costs for Nordic pulp mills were at their lowest level in over ten year in early 2017
There are expectations that sawlog prices may continue to go up in the coming months because of improved opportunities for Brazilian exporters of lumber, plywood and value-added products.
Hakan Ekstrom
Lower log and sawdust prices in the US South have resulted in a 15% decline of the Pellet Feedstock Price Index since 2013
Hakan Ekstrom
Although lumber production in New Zealand has increased the past three years, export volumes have fallen 15%.
Hakan Ekstrom
Lumber shipments from New Zealand to the US have gone up 37% the past four years and can be expected to increase in the future.
Hakan Ekstrom
The wood cost is often the major factor determining a pulp mill's competitiveness. In 2016 and early 2017, these costs fell in the US, with prices for wood chips and pulplogs declining more in the West than in the South.
Hakan Ekstrom
Consumption of pellets in Japan and South Korea has increased quite rapidly the past four years because of new government requirements which favor reducing carbon emissions and increasing the usage of renewable energy.
Hakan Ekstrom
Prices for imported softwood lumber to China have been in a steady upward trend during 2016 and 2017 with the average import price in March 2017 being 13% higher than 18 months earlier.
Hakan Ekstrom
High import tariffs on Canadian softwood lumber will increase overseas imports but Canada will remain the largest and most important supplier of lumber to the US housing market
Hakan Ekstrom
High supply of sawmills chips in Quebec and Ontario may force lumber companies to export chips outside the country
Hakan Ekstrom
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Importation of logs to China jumped 76% in March with New Zealand and Australia increasing their shipments the most

Log arrivals to China surged in March with an increase of 76% over the previous month. This came after almost a year of declining log imports, reports the Wood Resource Quarterly. New Zealand and Australia increased their volumes the most, together accounting for a record-high share of over 50% of the total import volume. Log import prices have trended downward since early 2014 and were in March 15% below the price a year ago.Seattle, USA. Log import volumes to China typically increase in the month of March every year and 2015 was no exception with a 76 percent jump from the previous month.

Softwood log imports to China slowed in the 4Q/14, but 2014 was still a record year with the import value surpassing 5.4 billion dollars

China is the largest importer of logs in the world and although the log shipments to the country slowed in the 4Q of last year, import volumes hit a record high in 2014, reports the Wood Resource Quarterly. The import cost of softwood logs in the 4Q/14 was seven percent below the prices seen in the 4Q/13, with the costs for logs from New Zealand and the US having fallen the most.Seattle, USA. China continued to dominate global log trade and was setting a new record high in the consumption of imported softwood logs in 2014. The seemingly endless increase in demand for wood raw-materials from

Lumber and log imports to China picked up in the 2Q to reach close to record highs; Russian lumber and New Zealand logs increased the most

Wood buyers in China were more active in the late spring after a slowdown during the winter months. This resulted in increased importation of logs and lumber during the 2Q, reports the Wood Resource Quarterly. The biggest gains were in lumber from Russia and softwood logs from New Zealand.Seattle, USA. A slowdown in the Chinese economy impacted the construction sector in early 2014 resulting in a decline in lumber import volumes by 16% in the 1Q/14 as compared to the previous quarter. The biggest drop was in Canadian lumber shipments, which fell to their lowest levels in two years,

China imported logs and lumber for a record nine billion dollars in 2013, with North America, Russia and New Zealand being the major suppliers

Importation of logs and lumber to China reached a new record in 2013 with lumber imports being up 19% and log imports increasing 23% from 2012, as reported in the Wood Resource Quarterly. North America, Russia and New Zealand were the major supplying countries but Sweden, Finland, Ukraine, Chile and Australia saw the biggest increases in market share.Seattle, USA. China’s importation of softwood lumber was 19 percent higher in 2013 than in 2012 reaching a new record high. The unprecedented increase in lumber shipments to the Chinese market that began in 2008 is continuing. In 2008, the

China importation of lumber and logs roars back to new highs in the 2Q/13, with imports up 30 % year-over-year

Increased investments in the housing sector resulted in record imports of logs and lumber to China in the 2Q/13, reports the Wood Resource Quarterly. Lumber importation has grown faster than that of logs, with Russia and Canada being the major lumber suppliers in recent years. New Zealand has become the major supplier of logs, overtaking Russia, who has long dominated this marketSeattle, USA. After a decline in importation of logs and lumber into China in 2012 and early 2013, the country came back roaring in the 2Q/13 with the import value increasing by more than 30 % year-over-year, as

Importation of logs and lumber to China were up over ten percent the first four months of 2013

Chinese demand for lumber and logs has had a resurgence, with importation during the first four months of 2013 being over ten percent higher than the same period in 2012, report the Wood Resource Quarterly. The total value of North American imports was up 30 percent from 2012.Seattle, USA. China’s hunger for wood was less acute in 2012 than in the previous year. In particular, importation of softwood logs fell substantially from the record levels of 2011. Importation of lumber was also lower in 2012, but the decline was much less than that of logs. The biggest changes in log and lumber

Log imports to China from New Zealand and the US were up 26 percent in the second half of 2012 from the 1H/12

Log imports to China were off to a slow start in 2012 but in the second half of the year, shipments picked up with New Zealand and the US gaining the biggest market shares, reports the Wood Resource Quarterly. The Chinese domestic log market also heated up, with log prices reaching record high levels.Seattle, USA. Demand for imported softwood logs in China increased in the second half of 2012 after declining during the first six months of the year. Total imports in the 2H/12 were up nine percent, but the increase was not equally distributed between supplying countries. Shipments from New

Log and lumber imports to China were down 19% during first eight months of 2012

Importation of both logs and lumber to China fell substantially in 2012, reports the Wood Resource Quarterly. Total imports, by value, during the first eight months was 4.3 billion dollars, or 19% less than in 2011, with the biggest declines in logs imported from Russia and the US, and in lumber from North America.Seattle, USA. The reduction in construction activities in China during 2012 has resulted in reduced demand for lumber, and as a consequence, a sharp decline in the importation of softwood logs and lumber to the country. During the first eight months this year, China imported logs

Log and lumber imports to China were down 19% during first eight months of 2012;biggest declines from Russia and the US

Importation of both logs and lumber to China fell substantially in 2012, reports the Wood Resource Quarterly. Total imports, by value, during the first eight months was 4.3 billion dollars, or 19% less than in 2011, with the biggest declines in logs imported from Russia and the US, and in lumber from North America.Seattle, USA. The reduction in construction activities in China during 2012 has resulted in reduced demand for lumber, and as a consequence, a sharp decline in the importation of softwood logs and lumber to the country. During the first eight months this year, China imported logs

China imported 15% less sawlogs in 1H/12 than in 1H/2011; in addition, prices for domestic and imported softwood logs were lower than last year

The slowing economy in China has reduced the importation of logs from New Zealand, Russia and the US by about 15 percent during the first six months of 2012. Prices for imported and domestic softwood logs in China have fallen this year by 14 percent and 10 percent, respectively as reported in the Wood Resource Quarterly.Seattle, USA. China’s phenomenal GDP growth of between 9 and 14 percent annually over the past decade slowed down last year and is forecasted by International Monetary Fund (IMF) to be “only” 8.25 percent in 2012. Reduced investments in public projects and a cooling

China log and lumber imports down in 1Q/12, with Russia and New Zealand suppliers hit the hardest, while North America gained market share

China’s demand for logs and lumber fell in late 2011 and early 2012 because of their slowing housing market. However, over the past ten years, importation of wood products has increased dramatically, as reported in the Wood Resource Quarterly. Lately, North American log and lumber exporters have increased their market share in China at the expense of exporters in Russia and New Zealand.Seattle, USA. Over the past decade, China’s fast expanding economy and boom in housing starts lifted the country to being the world’s largest importer of sawlogs and the second largest importer of softwood

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