China’s lumber demand increased despite slowdown in global economy
global lumber market
GLOBAL LUMBER MARKETS
With unchanged or slightly higher log costs and lower lumber prices in the 2Q, sawmills in North America saw their profit margins decline again after the short-lived improvements seen in the 1Q/19.
Demand for lumber in China, the UK, Egypt and the Netherlands increased this year despite a slowdown in the global economy, reports the Wood Resource Quarterly.
Lumber production in Canada from January to May 2019 was 9 per cent lower than it was during the same period in 2018. Most of the decline were in British Columbia, where production was down 16.5 per cent year-over-year.
China imported almost eight million m3 of softwood lumber in the 2Q, a new quarterly high. Russian deliveries reached five million m3, a 39 per cent increase from the 1Q/19.
The increased lumber demand in the MENA region continued in the 1Q/19 when the two major markets, Egypt and Saudi Arabia, increased their importation by over 50 per cent from the 1Q/18.