2018 International Forest Industries IFI April May 2018 Digital | Page 20

LUMBER PROCESSING NEWS
Softwood lumber trade reaches record-high
Global Lumber Trade America
Trade of softwood lumber reached
an all-time-high in 2017 as demand
for wood was strong in most key
markets around the world.
An estimated 126 million m3
of softwood lumber was shipped
from forest-rich countries such
as Canada, Russia, Sweden and
Finland to markets with high
consumption of lumber, including
China, the US, the United Kingdom,
Japan and Germany.
Since the global recession in
2008, international trade of lumber
has gone up by as much as 50%.
With the economy forecasted to
stay healthy in the US and Europe
in 2018, this might be another good
year for lumber exporters. US softwood lumber production
in 2017 reached the highest level
seen in ten years. The biggest
increase came in the southern
states, but other regions of
the country also had healthy
production gains year-over-year.
The higher domestic production
levels resulted in decreased
demand for imported lumber as
US lumber consumption was up by
only one percent from 2016.
The strong market for lumber
in the US led to record high lumber
prices in both the US and Canada in
late 2017 and early 2018.
Lumber markets of North
Lumber markets of China
Over the past two years, prices
for imported softwood lumber to
China have been steadily rising
and in January 2018 reached their
highest levels since March 2015.
Lumber supply from Russia and
North America has generally been
the lowest cost lumber imported
to China, while lumber from Chile,
Sweden and Finland typically
is at the higher end of the price
spectrum.
Russia and Canada continue to
be the major suppliers, but their
total market share has shrunk from
81% in 2015 to 76% in 2017, with
particularly Nordic mills increasing
their presence in this fast-growing
market.
Lumber market of Japan
Although lumber imports to Japan
fell in the 4Q/17, the total volume
for the year was up slightly for
the second consecutive year. The
biggest changes in supply over the
past few years have been reduced
shipments from Canada and
increased imports from Finland and
Sweden.
Compared to most other major
markets of the world, domestic and
import prices for lumber have been
surprisingly stable.
Ontario supporting sawmill in Killaloe
Ontario is supporting Ben Hokum
and Son Ltd. to upgrade and
modernize its sawmill in Killaloe,
helping to create and maintain 106
jobs and boost economic growth.
Ben Hokum and Son Ltd. is
one of eastern Ontario’s largest
lumber producers, and the largest
producer of red and white pine
in Ontario. Its lumber is used in
flooring, framing, paneling, pallets
and crafting material.
“As a fourth-generation mill
owner, I realize the importance of
providing meaningful employment
for our community, and a chance
for our employees to improve their
skill-set through automation,”
said Dean Felhaber, president of
Ben Hokum and Son Ltd. “With
these value-added processes,
we will further our company’s
penetration into global lumber
markets securing our future, as
well as those who depend on us
— employees, families, suppliers,
community, customers.”
Through the funding, the
company will be able to grow its
business and increase efficiency by
modernizing its infrastructure and
purchasing new equipment. This
will increase production capacity
and increase competitiveness while
ensuring resources are managed
sustainably.
“Our government understands
how important a strong forest
18 International Forest Industries | APRIL / MAY 2018
products sector is to Ontario’s
economy and the key role it
plays in many northern and rural
communities,” said Nathalie
Des Rosiers, minister of Natural
Resources and Forestry.
The project will maintain 101
existing jobs and create five new
positions at the mill in Killaloe.
“I am happy to see the
investment we are making in
eastern Ontario, and the support
this will provide to families in
Ontario,” said Steven Del Duca,
minister of Economic Development
and Growth.
Ontario is continuing its
support for the forestry sector by
investing $5.5 million over five
Dean Felhaber,
president of Ben
Hokum and Son Ltd.
years in Ben Hokum and Son Ltd.’s
infrastructure project.
By generating over $15.3
billion in revenues and supporting
approximately 172,000 direct and
indirect jobs, the forestry sector is
a significant part of communities
across the province.