January 2014 International Trade (Softwood Lumber)

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Softwood lumber exports increased by 5 MMBF (3.3 percent) in January while imports fell by 7 MMBF (0.1 percent). Exports were 18 MMBF (13.3 percent) above year-earlier levels; imports were 94 MMBF (11.9 percent) higher. 

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Asia (especially China and Japan) retained the “top spot” for U.S. softwood lumber exports in January. China was also the largest single-country destination by a wide margin; year to date (YTD), exports to China were up over 80 percent relative to the same period in 2013. Meanwhile, Canada was the overwhelming source of softwood lumber imports into the United States. Imports from Brazil, Honduras, Finland and Austria increased markedly. 

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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 January. At the same time, Great Lakes customs districts (especially Duluth, MN) handled two-thirds of the softwood lumber imports coming into the United States. 

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Douglas-fir comprised 22.1 percent of all softwood lumber exports in January, followed by Southern yellow pine with 21.9 percent.

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.