Global Lumber Trade Increased in 2016 on U.S. and CH Demand

Bothell, WA, December 20, 2016—Global demand for lumber increased in 2015 and 2016, resulting in a rise in trade by 10.2% in 2015, and Wood Resources International estimates that the increase will be as much as 13.6% in 2016.

The major markets that have been driving this surge in trade are the U.S. and China. This comes in contrast to the World Trade Organization’s report in September that world trade would expand by only 1.7% in 2016, a downward revision from earlier this year and the slowest pace since the global financial crisis in 2009. This gloomy forecast cannot be extrapolated to the global trade of softwood lumber.

The slow and steady improvements in the U.S. housing market in 2016 have resulted in both higher production domestically and an increase in lumber imports. During the first eight months of 2016, lumber production was up 3.6% as compared to the same period in 2015.

U.S. lumber imports are up 31% so far this year and may reach an eight-year high of almost 40 million m3 in 2016. Prices for lumber surged in late 2015 and throughout 2016 as exemplified by prices for southern yellow pine, which jumped over 35% in 12 months.