April 2015 International Trade (Softwood Lumber)

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Softwood lumber exports increased by 11 MMBF (7.5%) in April while imports fell by 100 MMBF (-8.3%). Exports were 26 MMBF (15.5%) below year-earlier levels; imports were 43 MMBF (4.1%) higher. The net export deficit was 69 MMBF (7.7%) 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 April (42.9%). Asia (especially China, Japan and Taiwan) was a distant second (37.4%). Canada was also the largest single-country destination (23.3%). Year-to-date (YTD) exports to China were down over 50% relative to the same period in 2014. Meanwhile, Canada was the source of nearly all (95.7%) softwood lumber imports into the United States. Overall, YTD exports were down 17.5% compared to a year earlier, while imports were up 11.4%. 

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U.S. softwood lumber export activity through West Coast customs districts rose slightly in relation to the other districts during April: 41.0% of the U.S. total; Seattle retained the title of most-active district, with 27.0% of the April total. At the same time, Great Lakes customs districts handled 70.4% of the softwood lumber imports (especially Duluth, MN with 30.0%) coming into the United States. 

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Southern yellow pine comprised 27.0% of all softwood lumber exports in April, followed by Douglas-fir with 16.4%. Southern pine exports were up 2.9% YTD relative to a year earlier, while Douglas-fir exports were down 37.3%.

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.