High construction activity increases worldwide demand for lumber

In November 2020, the index of completed buildings construction (eg, residential, schools, shops, etc) in the European Union increased by 0.7% compared to previous month, according to Eurostat. The index remains at a high level.

“The high construction activity, combined with a very active ‘do it yourself’ sector in several European countries, have resulted in an increased demand for softwood lumber,” said Jenny Wessung, Chief Executive Officer at Woodstat. “We can expect a further increase in construction activity from 2021 to 2023. Even in the United Kingdom, we have seen a higher activity in the housing sector and latest figures are close to previous year.”

In China, housing starts in November were more than double compared to 2007. In the United States, single-family housing starts in November increased to the highest level since 2007. This can be explained by a shortage of houses and extremely low interest rates. According to the National Association of Homebuilders, single-family construction will increase further from 2021 to 2023.

“The high construction activity in many countries and an increased activity in lumber construction lead to an increased demand for softwood lumber,” said Wessung.