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.