May 2015 International Trade (Softwood Lumber)

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Softwood lumber exports increased by 1 MMBF (0.7%) in May while imports fell by 12 MMBF (-1.1%). Exports were 11 MMBF (7.0%) below year-earlier levels; imports were 72 MMBF (6.2%) lower. The net export deficit was 61 MMBF (6.0%) smaller. 

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Asia (especially China, Japan and Taiwan) was once again the primary destination for U.S. softwood lumber exports in May (38.4%). The rest of North America (i.e., Canada and Mexico) was a close second (36.0%). Canada was the largest single-country destination (20.1%). Year-to-date (YTD) exports to China were down over 44% relative to the same months in 2014. Meanwhile, Canada was the source of nearly all (95.2%) softwood lumber imports into the United States. Overall, YTD exports were down 15.5% compared to a year earlier, while imports were up 7.3%. 

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U.S. softwood lumber export activity through West Coast customs districts rose slightly in relation to the other districts during May: 41.0% of the U.S. total; Seattle retained the title of most-active district, with 28.3% of the May total. At the same time, Great Lakes customs districts handled 68.8% of the softwood lumber imports (especially Duluth, MN with 27.0%) coming into the United States. 

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Southern yellow pine comprised 28.3% of all softwood lumber exports in May, followed by Douglas-fir with 16.5%. Southern pine exports were up 3.6% YTD relative to 2014, while Douglas-fir exports were down 35.5%.

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.