June 2013 International Trade (Softwood Lumber)

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Softwood lumber exports fell by 13 MMBF (8.2 percent) in June while imports decreased by 82 MMBF (also 8.2 percent). Exports were 15 MMBF (11.8 percent) above year-earlier levels; imports were 124 MMBF (15.5 percent) higher. 

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North America (i.e., Canada and Mexico) reclaimed the “top spot” for U.S. softwood lumber exports in June, although Asia (especially China and Japan) ran a close second; as usual, Canada was the largest single-country destination. Meanwhile, Canada was far-and-away the largest source of softwood lumber imports into the United States. Imports from Romania, Austria, Estonia, Lithuania, Sweden and Malaysia have increased markedly on both year-over-year and year-to-date change bases. Interestingly, however, imports are on the decline from an expanding number of countries. 

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Just under half of U.S. softwood lumber exports left the country through West Coast (primarily Seattle, WA) customs districts in June. Volume appears to have fallen off in the Columbia-Snake district, as its ranking has fallen from 3^rd to 8^th on a YTD basis. At the same time, Great Lakes customs districts (especially Duluth, MN) handled most of the softwood lumber imports coming into the United States. The Charlotte district has seen traffic pick up this year; its ranking has improved from 26^th to 11^th. 

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Douglas-fir made up just under one-quarter of all softwood lumber exports in June, followed by southern yellow pine. Hemlock exports have fallen off on a YTD basis, dropping that species’ ranking from 3^rd to 7^th.

The foregoing comments represent the general economic views and analysis of Delphi Advisors, and are provided solely for the purpose of information, instruction and discourse. They do not constitute a solicitation or recommendation regarding any investment.