October 2013 International Trade (Softwood Lumber)

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Softwood lumber exports rose by 23 MMBF (14.6 percent) in October while imports increased by 34 MMBF (3.7 percent). Exports were 39 MMBF (27.7 percent) above year-earlier levels; imports were 21 MMBF (2.3 percent) higher. 

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Asia (especially China and Japan) retained the “top spot” for U.S. softwood lumber exports in September. China was also the largest single-country destination by a wide margin; year to date (YTD), exports to China were up 67.2 percent relative to the same period in 2012. 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 YTD 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 October. 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 one-quarter of all softwood lumber exports in October, followed by southern yellow pine. Hem-fir exports have jumped on a YTD basis, causing that species’ ranking to rise from 10^th to 6^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.