Softwood lumber imports to the US were up 4.5% in 2020, contrary to China, Japan and MENA where imports fell

STOCKHOLM, March 29, 2021 /PRNewswire/ --

Global Lumber Trade in 2020

Softwood lumber imports to the US were up 4.5% y-o-y in 2020, contrary to most other regions of the world. From 2019 to 2020, importation to China and Japan was down 11% and 13%, respectively. The MENA region also saw decreased importation, importing only an estimated 8.6 million m3 in 2020, down from about 10.5 million m3 in 2019. In contrast, most of Europe's lumber imports, which are typically intra-continental, remained practically unchanged from 2019 to 2020.

Softwood Lumber - North America

The lumber market in the US has been highly unusual during the winter season with an active home building sector, tight lumber supply, low wood inventories, and record prices. Lumber production was up in all regions of North America in the 4Q/20 y-o-y. Furthermore, there are reports that operating rates have gone up in early 2021 due to strong lumber demand from the housing sector.

Unexpectedly, US lumber prices reached record highs in early 2021, with prices being higher for most species in both Canada and the US than they were at the previous all-time highs in September of 2020.

Overseas lumber supply to the US reached a record 15% of the total importation in the 4Q/20, predominantly driven by higher shipments from Germany, Sweden, and Romania. The total US import volume, including that from Canada and overseas, was close to 10 million m³ in the 4Q/20, the highest quarterly volume in 13 years.

Although lumber exports from Canada picked up in the second half of the year, 2020 was the fourth consecutive year with y-o-y declines, reports the WRQ. The total export volume fell to 26 million m³, down from over 33 million m³just five years ago, mainly due to limited log supply in the province of British Columbia. Canadian shipments to the strong US market were up slightly from 2019, while the sales to all other markets fell. In particular, lumber volumes to China shrunk in 2020, down 33% from the previous year. The good news for Canadian lumber exporters has been the dramatic increase in the values of the shipped goods over the past year.