May 2014 International Trade (Softwood Lumber)

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Softwood lumber exports decreased by 14 MMBF (8.5 percent) in May while imports rose by 103 MMBF (9.7 percent). Exports were 3 MMBF (2.3 percent) below year-earlier levels; imports were 160 MMBF (15.9 percent) higher. 

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Asia (especially China and Japan) was the primary destination for U.S. softwood lumber exports in May. China was also the largest single-country destination; year to date (YTD), exports to China were up over 54 percent relative to the same period in 2013. Meanwhile, Canada was the overwhelming source of softwood lumber imports into the United States. Overall, exports were up 12.1 percent YTD compared to the same period in 2013, while imports were up 5.9 percent. 

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Roughly 44 percent of U.S. softwood lumber exports left the country through West Coast (primarily Seattle, WA) customs districts in May. 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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Southern yellow pine comprised 24.7 percent of all softwood lumber exports in May, followed by Douglas-fir with 21.3 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.