September 2014 International Trade (Softwood Lumber)

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Softwood lumber exports decreased by 5 MMBF (3.2 percent) in September while imports rose by 60 MMBF (5.8 percent). Exports were 20 MMBF (12.8 percent) below year-earlier levels; imports were 172 MMBF (18.7 percent) higher. 

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The rest of North America (i.e., Canada and Mexico) was once again the primary destination for U.S. softwood lumber exports in September, although Asia (especially China) was a close second; Canada was also the largest single-country destination. Year to date (YTD), exports to China were up just 11 percent relative to the same period in 2013 (down from +21 percent YOY in August). Meanwhile, Canada was the source of nearly all (97.2 percent) softwood lumber imports into the United States. Overall, YTD exports were up 3.6 percent compared to the same period in 2013, while imports were up 10.3 percent. 

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Roughly 45 percent 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 69 percent of the softwood lumber imports coming into the United States. 

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Southern yellow pine comprised 21.6 percent of all softwood lumber exports in September, followed by Douglas-fir with 19.4 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.