Softwood lumber prices have trended downward in the US, Russia and Japan
this fall, while they have gone up in China and the Nordic countries,
reports the Wood Resource Quarterly
Prices for softwood lumber imported to China increased this fall,
while they fell in Japan as the housing market weakened. In the US,
lumber prices were moving downward in the 3Q, while still being close to
their highest levels in ten years, reports the Wood Resource Quarterly.
In the Nordic countries and Russia, lumber exports have increased
because of higher demand for wood in key markets in Europe and the MENA
Demand for softwood lumber has been
steadily increasing on a worldwide basis since the great recession. The
higher consumption of lumber has resulted in a rise in the global trade
of lumber with shipments in 2014 on pace to be the highest since 2007,
according to the Wood Resource Quarterly (WRQ). Following is a brief
excerpt from the newly released WRQ regarding of the developments in key
markets during the fall of 2014:
Lumber market - the US
After lumber prices peaked in the US in the late summer, prices have
trended downward during the fall and November prices were about ten
percent below those in August with the biggest decline in prices being
for southern yellow pine. The Random Lengths Price Index, a composite of
15 common lumber grades in North America, has also fallen this autumn.
Despite the recent decline, the Index is nearing higher levels than we
have seen in over ten years.
Lumber market - Northern Europe
Lumber prices in both Sweden and Finland have been trending upward since
early 2012, and in the 3Q/14 they were at their highest levels in 3 1/2
years. Swedish lumber exports have increased by as much as seven
percent over the first eight months of the year and total lumber
shipments in 2014 are projected to be at their highest level since 2008.
The markets in Egypt, the United Kingdom and Denmark in particular have
grown this year.
Lumber market - Russia
Benefiting from a weakening currency, Russian lumber exporters have
increased export volumes during the summer and fall this year with the
3Q/14 shipments reaching a record high. The biggest increase in exports
has been to China, the largest market for Russian lumber, where the
shipments for the first nine months this year were 11% higher than the
same period last year. The average value for lumber exported during the
2Q/14 and 3Q/14 has fell slightly.
Lumber market - Japan
The housing market in Japan took a hit this year when the economy was
impacted by the increase in the country's sales tax in April. The
reduced activity in the construction sector has impacted demand for
lumber, with domestic lumber production falling and lumber import
volumes declining 16%. Prices for both domestic and imported lumber have
declined this fall compared to the first half of the year.
Lumber market - China
Despite the reduction in house sales, China has increased the
importation of softwood lumber by five percent during the first nine
months of this year as compared to the same period in 2013, reports the
WRQ (www.woodprices.com). The 3Q/14 import volume was actually the
second highest quarterly import volume on record. The average import
prices for softwood lumber have trended upward for almost five years and
were close to record highs in the 3Q/14.
Global lumber, sawlog and pulpwood market reporting is included in
the 52-page quarterly publication Wood Resource Quarterly (WRQ). The
report, which was established in 1988 and has subscribers in over 30
countries, tracks sawlog, pulpwood, lumber and pellet prices, trade and
market developments in most key regions around the world. To subscribe to the WRQ, please go to www.woodprices.com
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