lnternational markets continue calling on western softwoods

tT"u rNrERNArroNAr- marketplace for U.S.-produced soft-

|. wood lumber continues to be a small but steady destination for western softwood species, especially in the Pacific Rim countries.

The market took a huge jump in 2010 and 2011 with the addition of China as a major buyer of U.S. softwoods. Exports for 20l0 finished 5lVo ahead, of 20O9, at more than $843 million and 1.3 billion bd. ft.

Softwood shipments for 201I took another huge jump with a $1.32 billion export value with more than 1.63 billion bd. ft. shipped overseas. China entered the market in a big way, pushing it to the #l spor with $245 million in value and 414 million bd. ft. Japan continued to improve, with $154 million in value and 173 million bd. ft. received in 201 l. Two other $100 million markets were Mexico and

Canada, including re-exports overseas.

International markets cooled in fourth quarter 20ll and were slow to start up again in 2012. Exports have picked up during this second half of 2012 and are only down 107o from 201I and above 2010. Estimated value for 2012 should be just under $1.0 billion in value and 1.25 billion in board footage. This year, China dropped way back from its import levels of 201 1, and may end up back into the #4 position, behind the steadily growing markets of Canada, Mexico and Japan.

Regional markets estimates in 2Ol2 for U.S. softwoods include the Caribbean at $124 million, Southeast Asia at $45 million, and the European Union at $25 million. South Asia, including India and Pakistan, and the South Pacific, including Australia and the French Pacific Islands, combine for another $36 million in exports. Central and South America combine for over $5 million in shipments.

Western species continue to have the major share of the international markets. Douglas fir has climbed from $58 million in 2005 to $283 million (30Vo of all softwood export) in 2011 and should drop only a little to $265 million in2O12. Hemlock has climbed from $l I million to $161 million in 201l, but dropped in 2012 to $79 million, mostly from China. Ponderosa pine maintained a steady market at about $32 million in 2011, but jumped to $40 millionin2012.

Southern pine shipments reached $175 million in 2011, but dropped to $144 million in2Ol2.

Markets

In the worldwide lumber market, U.S. softwood producers are still small suppliers in international softwood markets. Europe, Canada, Chile, New Zealand, and Russia are the major exporting regions or countries for softwood lumber products.

International markets' requirements and product uses vary widely by species, size, grade requirements, and end use of the materials. Traditional U.S. structural species, such as Douglas fir and hemlock, are found in many non-structural products. Lower grades of all species, of limited value in structural applications, find a home in crating, pallets and packaging. They are used in many remanufacturing and gluing facilities, in parts of the world with much lower labor rates, for fumiture and millwork components.

Wood frame residential construction is mostly limited to North America, Japan, and parts of Oceana. Even in those markets, North American framing system using 38mm x 89mm (2x4) structural members is limited to the U.S.. Canada, and a small segment of Japan. Japan is the second largest wood frame construction market in the world. But of Japan's nearly 450,000 wood frame units in 2012, only 98,000 were 2x4 based. The vast majority were traditional Japanese metric post and beam timber construction using metric sizes.