118 million m3 of timber exchanged hands in 2016, a 10 per cent increase compared to 2015.
Imports to the US account for about one-third of globally traded timber and have almost doubled in five years. China accounted for about 17 per cent of import volumes in 2016, followed by the United Kingdom, Japan and Germany, according to Wood Resources International (WRI).
The biggest declines in imports globally from 2015 to 2016 were to the MENA region, where demand for timber fell in all the major markets, including Egypt, Algeria, Saudi Arabia and Morocco.
Moreover, early 2017 showed an upward trend for global softwood timber market with prices in North America hitting a 13-year high, while Chinese import prices jumped 13 per cent in 18 months.
- North America
Timber production in North America in 2016 was up six percent from the previous year, reaching its highest level since 2007. The biggest rises in production occurred in the US South and Eastern Canada, while the increases in western Canada and the western US were more modest.
Prices for timber in the US have jumped during the first four months of the year to hit a 13-year high in April. Many of the commonly traded grades surged in price by more than 20 per cent from April of 2016.
- Northern Europe
Sweden exported 12.9 million m3 of softwood timber in 2016, which was the highest volume exported since 2006. The increase from 2015 was a modest 1.5 per cent, with shipments to Denmark, Japan, China and France rising the most.
Domestic timber prices in both Finland and Sweden continue to be close to their lowest levels in 10 years in US dollar terms, as reported in the Wood Resource Quarterly.
Prices for imported softwood timber to China have been in a steady upward trend during 2016 and 2017 with the average import price in March 2017 being 13 per cent higher than 18 months earlier.
The biggest change in pricing over the past two year has been that prices for Russian timber are no longer substantially cheaper than those for timber from other supplying regions, but instead are rather close to the average import price.
Total housing starts were up 3.2 per cent in Japan in the 1Q/17 as compared to the same quarter in 2016, and the economic outlook for the coming year is slightly more optimistic than that for last year.
Prices for domestic and imported timber have remained practically unchanged for almost a year in Yen terms. With the Yen strengthening against the US dollar during the first four months of 2017, timber prices have increased so far this year in US dollar terms.
After a substantial decline in softwood timber export prices during 2014 and 2015, Russian timber prices have trended upward for most of 2016 and early 2017. Average export prices in March 2017 were 12% higher than in the same month last year, and prices for wood going to China have gone up even faster over the same time-period.
Export volumes to China in the 1Q/17 were unchanged from the previous quarter, holding steady at the second highest level on record.