Friday, July 31st16.3°C
27122

North American lumber exports to Asia fell sharply in March amid port strike

MONTREAL - North American lumber exports to Asia were down sharply in March, held back by a Vancouver port strike, according to a U.S.-based trade industry association which found exports to China fell nearly 42 per cent from the prior year while exports to Japan plummeted 59 per cent.

However, the Western Wood Products Association said improvements in North American markets meant that overall shipments by Canadian and U.S. producers were down just 1.9 per cent year over year. Overall Canadian shipments decreased 4.8 per cent while U.S. shipments were 0.4 per cent higher even as both countries saw deliveries grow 8.4 per cent from February.

North American lumber production increased 3.1 per cent in March to 4.7 billion board feet. Canadian production rose 2.4 per cent to 2.1 billion board feet in March, up 10.1 per cent from the prior month. B.C. output increased 10.8 per cent while the rest of Canada was up 9.4 per cent.

Lumber use in Canada rose 31.1 per cent to 678 million board feet or 14 per cent of North American production, while U.S. consumption fell 0.8 per cent to 3.3 billion board feet.

North American lumber inventories increased 5.8 per cent from February to 6.5 billion board feet, due to rail shipment delays and the Vancouver port strike.

Lumber prices have fallen 12 per cent so far this year after rising 19 per cent in 2013.

Paul Quinn of RBC Capital Markets expects prices will decrease four per cent in 2014 to US$340 per thousand board feet, before increasing 15 per cent to US$390 in 2015 and US$415 in 2016.

Canadian lumber producers Canfor Corp. (TSX:CFP) and Western Forest Products Inc. (TSX:WEF) said in April that shipments had been affected by weather-related transportation issues and the port strike. They expected a rebound in the second quarter as warmer weather contributed to stronger residential construction demand.

RBC estimates U.S. housing starts will surpass one million in 2014 for the first time since the recession, reaching 1.1 million units followed by 1.25 million in 2015 and 1.35 million in 2016.

Follow @RossMarowits on Twitter

The Canadian Press


Read more Business News

25608


Recent Trending




Today's Market
S&P TSX14382.78+80.98
S&P CDNX588.30+3.54
DJIA17745.98-5.41
Nasdaq5128.79+17.05
S&P 5002108.63+0.06
CDN Dollar0.7666-0.0026
Gold1096.90+0.60
Oil47.95-0.96
Lumber254.10+2.30
Natural Gas2.883+0.062

 
Okanagan Companies
Pacific Safety0.18+0.00
Knighthawk0.010.00
QHR Technologies Inc1.42+0.02
Cantex0.04-0.01
Anavex Life Sciences0.80+0.01
Metalex Ventures0.045-0.005
Russel Metals19.45+0.24
Copper Mountain Mining0.78-0.07
Colorado Resources0.06+0.00
ReliaBrand Inc0.0045-0.0022
Sunrise Resources Ltd0.03+0.00
Mission Ready Services0.14-0.01
Decisive Dividend Corp2.50-0.08

 





FEATURED Property
2268312205-130 Barber Road
2 bedrooms 2 baths
$243,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Chasing ducks

Photo: Thinkstock.comWhen businessmen tell me that being low priced is the only way to stay in business, I am skeptical. Price is the simplest way for a consumer to compare and is overused as the basi...


Taking care of business

Photo: Thinkstock.comRetirement as a goal has changed a lot over the years. There was a time, it was the only goal. You’d punch the clock and count the years until you could stop punching that t...


Income from home equity

Photo: Thinkstock.comWhen retirement funds run low, seniors often ask if tapping into the equity in their home is the right way to retain financial independence. To see if this option might be a good ...

_



26586




Member of BC Press Council


24222