November 2013 International Trade (Softwood Lumber)

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Softwood lumber exports dropped by 23 MMBF (12.9 percent) in November while imports increased by 45 MMBF (4.7 percent). Exports were 22 MMBF (15.9 percent) above year-earlier levels; imports were 176 MMBF (21.4 percent) higher. 

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Asia (especially China and Japan) retained the “top spot” for U.S. softwood lumber exports in November. China was also the largest single-country destination by a wide margin; year to date (YTD), exports to China were up nearly 69 percent relative to the same period in 2012. Meanwhile, Canada was the overwhelming source of softwood lumber imports into the United States. Imports from Romania, Austria, Estonia, Sweden, Malaysia and Honduras have increased markedly on a YTD-over-YTD change basis. 

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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 November. 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 November, followed by southern yellow pine.

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.