Steady increases for western softwood exports

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rNrERNArloNar- marketplace

I- for U.S.-produced softwood lumber continues to be a small but steady destination for western softwood species, especially in the Pacific Rim countries. The market fell back a bit in 2012, but recovered with the return of China as a major buyer of U.S. softwoods in 2013. Exports for 2Ol3 should finish 2OVo ahead of 2Ol2 at more than $1.15 billion and 1.4 billion bd. ft.-a possible new near-term record.

China reentered the market in a big way, pushing it to the number one spot with an estimated $223 million in value. Japan continued to improve with an estimated $166 million in value and 173 million bd. ft. received in 2011. Two other $l00-million markets were Mexico and Canada, which includes re-exports overseas.

The international markets cooled in 2012 and were slow to start up again in 2013. Exports picked up during the second half of 2013 and are up from 2012 and near the record levels 6f 201 1. Last year, China regained the number one position for softwood exports after dropping back to fourth place in 2012, behind Canada, Mexico and Japan-markets that are steady or slowly growing.

Regional markets estimates in 2013 for U.S. softwoods include the Caribbean at $150 million, Southeast Asia at $50 million, and the European Union falling to $18 million. Upwardmoving markets-such as South Asia, including India and Pakistan, and the South Pacific, including Australia and the French Pacific Islands-combine for another $60 million in exports and Central and South America combine for over $12 million in shipments, up from 9 million in2ol2.

Western species continue to have the major share of the international markets. Fir has climbed from $58 million in 2005 to $295 million (337o of all softwood export) in 2013. Hemlock has climbed from $ll million in 2005 to $161 million in 2011, but dropped in2013 to $105 million, mostly from China. Ponderosa pine has maintained a steady market at about $32 million in 2Ol1, but up to $40 million in2013.

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 requi rements and product uses vary widely by species. sizes. grade requirements. and end use of the materials. Traditional structural species, such as 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 manv remanufactur- ing ancl gluing l'lrcilitics. in parts of thc worlcl 'uvith nrr-tch lurier labot' nrtcs. for l'r-u'nitulc und rlillnork cornl)oncnts.

Woocl l'r'ame rcsiclential constnlction is nrostlr'linritecl to Nortl'r Anrcrica. .lapan antl parts ol'Oceana. Evcn in thosc markets. thc use ol' North Anrcrican franring svstcms thut incorporatc 38n.rnr r 89nrnr (2x4) stnrctural nrcrnbers is linritcrl to thc U.S.. Canarla and a srnall scgnrcrrt in Japan.

.lapan is thc second largcst uoocl frarnc builcling in the riorld. bLrt o1'thc nearll 5-trO.000 rioocl ll'anre unils in .lapan this ycar. only 10t3.0(X) ucrc 2xrl blsccl -l'hc vast nra.ioritr ri crc traditional .lapuncsc nrctric post and bcanr tiuiber construction using nretlie sizt's. Stluelrrlrrl llrrrrrirr,: .izer irt ALrstralia und Ncn Zealunrl usc 3-5nrrn arrcl -1.5nrnr b1' c)0rnnr uncl l00rnrtr sizes. IJ.S. softu'ood plorluccrs slrcccssfirl in thcse nrirrkcts ure pror iding nrctric sizccl lunrbcr to cornl)ctc wilh olhcr impurtcd ploclucts. nlrinlv ll'orl Iiurope anrl Canucll.

lnternational Wood Uses

Most ol' thc U.S. sofnroorl cxportccl is lbr nolr strLlclLrritl ttscs. Interior applications. such ls rloors. uindous. fnrnrcs. nroulclings. I'loorirrs. pancling and other nrillwork. is a pr.inrc clcsti nation for both pinc and l'ir specics. upper grades are prized in Europe for wooden window and door parts and frames. Ponderosa and other western pines are used in rustic pine furniture, and for upholstery frames in Mexico, China and Vietnam. U.S. producers are selling both metric and imperial sizes into these markets, because much of the stock is ripped and resawn to provide "finished" metric sizes for the local markets.

Fr,rr-niture;rarts antl ulued puncls lrc also a clestinution lirr sclftuood lunrbcr. \\''estcrn specics, such as Dor-rglas fir ancl henrlock. in thc clear lnrl othcr.

A large portion of exported lower grades in softwoods are used in concrete forming for form walls, wailers and support posts. Much of the worldwide structural construction is based on the use of concrete so there are a large demand for formwork materials at all levels. Some world markets require structurally graded materials, some cultures use the material repeatedly. But some see wood as a single use material and aim for a cost competitive disposable supply, and use the remains for fuel or local d-i-y projects.

Western Species Markets

The Pacific Rim is the leading market for western species, with China the leading destination in2Ol3, after dropping back in 2012 behind Japan. China has grown by a factor of 10. In 2005, the exports to China were