Global softwood trade to record 14% growth in 2016

The growth in trade in the last 12 months has been driven by higher wood demand in China and the US.

WRQ said the expansion is in contrast to The World Trade Organisation’s (WTO) September economic forecast that world trade would only expand by 1.7% in 2016, a downward revision from earlier this year and the slowest pace since the global financial crisis in 2009.

Global demand for lumber increased in 2015 (+10.2%) and 2016 (predicted 13.6% rise).

The slow and steady improvements in the US housing market in 2016 have resulted in both higher production domestically and an increase in lumber imports, with the latter up 3.6% compared to the same period in 2015.

Prices for lumber surged in late 2015 and throughout 2016, with southern yellow pine prices jumping over 35% in 12 months.

Meanwhile, in Europe WRQ said lumber exports from Sweden have remained practically unchanged in 2016, with total shipments likely to reach about 12.5 million m3 in 2016.

Shipments to the MENA region have declined, while more lumber has been shipped to Asian and European markets so far this year.

Lumber export prices in Finland and Sweden continue to track each other, with average prices for Swedish softwood lumber being slightly higher than prices for Finnish exports.

WRQ reported that during the summer and autumn, China has seen strong demand for imported softwood lumber, with import volumes for Q2 and Q3 reaching their highest level on record.