October 2014 International Trade (Softwood Lumber)

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Softwood lumber exports increased by 15 MMBF (10.6%) in October while imports rose by 84 MMBF (7.7%). Exports were 28 MMBF (15.8%) below year-earlier levels; imports were 223 MMBF (23.4%) 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 October (40.9%), although Asia (especially China) was fairly close behind (36.4%); Canada was also the largest single-country destination (20.9%). Year to date (YTD), exports to China were flat relative to the same period in 2013 (down from roughly 11% YTD-over-YTD in September). Meanwhile, Canada was the source of nearly all (95.9%) softwood lumber imports into the United States. Overall, YTD exports were up 1.2% compared to the same period in 2013, while imports were up 11.6%. 

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Nearly 43% of U.S. softwood lumber exports left the country through West Coast (primarily Seattle, WA with 27.6%) customs districts in October. At the same time, Great Lakes customs districts handled over 70% of the softwood lumber imports (especially Duluth, MN with 26.0%) coming into the United States. 

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Southern yellow pine comprised 24.9% of all softwood lumber exports in October, followed by Douglas-fir with 17.4%.

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.