September 2013 International Trade (Softwood Lumber)

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Softwood lumber exports rose by 4 MMBF (2.4 percent) in September while imports increased by 28 MMBF (3.1 percent). Exports were 45 MMBF (39.5 percent) above year-earlier levels; imports were 112 MMBF (18.8 percent) higher. 

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Asia (especially China and Japan) retained the “top spot” for U.S. softwood lumber exports in September. Canada was the largest single-country destination, however. Meanwhile, Canada was far-and-away the largest source of softwood lumber imports into the United States. Imports from Romania, Austria, Estonia, Sweden, Malaysia and Honduras have increased markedly on both year-over-year and year-to-date change bases. 

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Just over half of U.S. softwood lumber exports left the country through West Coast (primarily Seattle, WA) customs districts in September. At the same time, Great Lakes customs districts (especially Duluth, MN) handled over two-thirds of the softwood lumber imports coming into the United States. 

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Douglas-fir made up just under one-quarter of all softwood lumber exports in September, followed by southern yellow pine. Hem-fir exports have jumped on a YTD basis, causing that species’ ranking to rise from 12^th 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.