June 2015 International Trade (Softwood Lumber)

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Softwood lumber exports decreased by 5 MMBF (-3.7%) in June while imports jumped by 103 MMBF (+9.4%). Exports were 6 MMBF (4.1%) below year-earlier levels; imports were 64 MMBF (5.6%) higher. The net export deficit was 70 MMBF (7.0%) larger. 

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North America (mainly Canada, but Mexico was close behind) was the primary destination for U.S. softwood lumber exports in June (43.3%). Asia (especially China) placed second (35.2%). Canada was the largest single-country destination (24.7%). Year-to-date (YTD) exports to China were down over 42% relative to the same months in 2014. Meanwhile, Canada was the source of nearly all (94.3%) softwood lumber imports into the United States. Overall, YTD exports were down 13.8% compared to a year earlier, while imports were up 7.0%. 

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U.S. softwood lumber export activity through West Coast customs districts rose slightly in relation to the other districts during June: 41.8% of the U.S. total; Seattle retained the title of most-active district, with 25.9% of the June total. At the same time, Great Lakes customs districts handled 67.1% of the softwood lumber imports (especially Duluth, MN with 29.9%) coming into the United States. 

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Southern yellow pine comprised 23.5% of all softwood lumber exports in June, followed by Douglas-fir with 17.1%. Southern pine exports were up 4.6% YTD relative to 2014, while Douglas-fir exports were down 33.5%.

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.