Global Softwood Lumber Prices Rose in Early 2017 with Prices in North America Hitting a 13-year High and Chinese Prices Increasing 13% in 18 Months

HELSINKI, June 16, 2017 /PRNewswire/ -- Softwood lumber prices in the US jumped in early 2017 to hit a 13 year high in April. Prices for softwood lumber imported to the major markets in Asia, China and Japan, were also higher year-over-year in early 2017, with Chinese import prices being more than 20% higher in the 1Q/17 as compared the 1Q/16, according to the latest Wood Resource Quarterly. In Europe, lumber prices continued trending downward with the Nordic export prices in the 1Q/17 falling to their lowest levels in ten years. 

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

To read the full 52-page report, please visit www.woodprices.com to initiate an annual subscription.

                  - 30 Years of Global Wood Price Reporting

Global Lumber Trade

Globally traded softwood lumber reached an all-time high in 2016. WRI estimates that 118 million m3 of lumber was traded last year, or 10 percent more than in 2015. Imports to the US account for about one-third of globally traded lumber and have almost doubled in five years. China accounted for about 17% of import volumes in 2016, followed by the United Kingdom, Japan and Germany.

The biggest declines in imports globally from 2015 to 2016 were to the MENA region, where demand for lumber fell in all the major markets, including Egypt, Algeria, Saudi Arabia and Morocco.

Lumber markets – North America

Lumber production in North America in 2016 was up six percent from the previous year, reaching its highest level since 2007. The biggest rises in production occurred in the US South and Eastern Canada, while the increases in western Canada and the western US were more modest.

Prices for lumber in the US have jumped during the first four months of the year to hit a 13-year high in April. Many of the commonly traded grades surged in price by more than 20% from April of 2016.

Lumber markets – Northern Europe

Sweden exported 12.9 million m3 of softwood lumber in 2016, which was the highest volume exported since 2006. The increase from 2015 was a modest 1.5%, with shipments to Denmark, Japan, China and France rising the most.

Domestic lumber prices in both Finland and Sweden continue to be close to their lowest levels in ten years in US dollar terms, as reported in the Wood Resource Quarterly.

Lumber markets – China

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. The biggest change in pricing over the past two year has been that prices for Russian lumber are no longer substantially cheaper than those for lumber from other supplying regions, but instead are rather close to the average import price.