| Seattle, USA. Softwood lumber markets continued to | | | | sawmills, but also from an increase in the importation |
| be weak in Japan and the US during the 3Q/09, but | | | | of lumber. During the first nine months this year, |
| have improved in Europe and, surprisingly, northern | | | | China imported 81% more lumber than during the |
| Africa, according to the Wood Resource Quarterly. | | | | same period last year. It is not inconceivable that in |
| Swedish sawmills have shipped 45% more lumber to | | | | 2009, China will import more lumber than Japan, a |
| Egypt, Morocco and Algeria this year compared to | | | | historical first. Canadian sawmills have been the major |
| last year, and this market has a current market share | | | | beneficiaries of this new fast-growing market, with |
| of 23% of all lumber exported from Sweden. Egypt | | | | exports up 135% so far this year. |
| is the third largest market for both the Swedish and | | | | The US lumber market improved for a short period in |
| Finnish lumber industries. With the increase in demand | | | | June and July when sawmill curtailments created |
| from the export market, lumber prices in the Nordic | | | | reduced lumber inventories, but the rally was |
| countries have gone up by over 20% in four months. | | | | short-lived and both production and prices fell back |
| The lumber market in Japan did not change much | | | | slightly towards the end of the 3Q in both Canada |
| during the 3Q, with domestic sawmills running at | | | | and the US. Softwood lumber prices were higher this |
| much lower rates than in 2008. During the first eight | | | | fall than in the spring when prices reached record |
| months, production was 15% lower than last year, | | | | lows. Expectations are that the US lumber market will |
| and it is not expected that there will be much | | | | continue to be slow during much of 2010. |
| improvement in the 4Q. So far this year, lumber | | | | Global forest industry reporting is included in the |
| imports are about 77% of last years' level. Prices for | | | | 50-page publication Wood Resource Quarterly. The |
| both domestic and imported lumber have been fairly | | | | report, established in 1988 and with readers in over |
| stable in Yen terms but have increased slightly in US | | | | 25 countries, tracks sawlog, pulpwood, lumber and |
| dollars because of exchange rate adjustments. | | | | pellet prices in key regions around the world and also |
| China is consuming record-volumes of lumber this | | | | includes regular updates of the latest developments in |
| year and the country's thirst for lumber has not only | | | | international timber, pulp, lumber and biomass |
| been met by higher production at the country's | | | | markets. |