Global timber markets improved in fourth quarter

11 March, 2010

Global markets improved in late 2009, with prices rising in North America and the Nordic countries, according to the Wood Resource Quarterly.

However, the increases reflected reduced production and supply rather than increased demand.

Lumber production in the western US was down by just over 20% last year, while sawmills in the south produced 24% less than in 2008.

In Canada, in December production was 45% of capacity, an improvement on 52% in November. Sawmills in British Columbia fared better than the rest of the country thanks to improved sales to Asia. Exports to the region were up 14% on 2008.

In the Nordic countries, lumber prices continued to rise in the second half of 2009 and were higher than in late 2008. Prices in Sweden rose faster than in Finland.

Sweden’s exports were slightly higher in 2009, thanks to lower log costs and favourable exchange rates, exports from Finland suffered a 16% decline on 2008.