Canadian Forest Industries Magazine

Wednesday, Sept. 1st

CHINA’S ONGOING DEMAND

According to Vancouver, B.C.-based Wood Markets international (WMI), “B.C. and Russia are considered to be the two biggest winners as China’s ongoing demand for lumber imports continues to expand.”

The information was in the August 2010 WMI Monthly Report, which also noted that China’s lumber imports almost doubled between 2000 and 2007 and are expected to double again in the period 2007 to 2010. The report’s authors expect that by 2015, China’s lumber imports will almost double yet again.

Since 2008, Canada’s lumber market share in China, which is primarily from B.C., has grown faster than Russia’s share, but Russia still dominated the Chinese market through 2009. “In 2010, however, Canada is expected to over take Russia by a wide margin with a leading softwood market share in China’s lumber market of between 40 and 45 per cent,” said Russell Taylor, President of WMI and co-author of the report. “In 2010, Canadian shipments to China could represent up to 13 per cent of Canada’s total softwood lumber exports and up to 20 per cent of B.C. total lumber production, potentially reaching close to 2.5 billion bf – nominal (over 4 million m3 – net).” This compares to just 210 million bf – nominal in 2006, or a 12-fold increase in just four years.

Output of sawn lumber in China has seen fast growth since 2001, but this has not been enough to keep up with surging domestic demand. The WMI report explains that since 2007, Russian log exports to China have plummeted due to a rising Russian log export tax and higher delivered log prices, reducing China’s log supply for domestic sawmills and plywood mills. Consequently, China has had to depend much more heavily on imported lumber from other countries to make up its deficit – and this is where B.C. has fit in.

Bill Tice, Editor  

CWF Spring Meeting 2010 Wrap-Up. Click here for the report.

Big Crowds at Atlantic Show. Find out more by clicking here.

UPDATE on MOUNTAIN PINE BEETLE report from WOOD MARKETS GROUP INC. Click here for the full press release.

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• August 31 - September 4, 2010
  Forest Bioenergy 2010
  Tampere, Finland
• September 15 - 18, 2010
  Pacific Logging Congress "In the Woods" Show
  Clatskanie, OR
• September 21 - 23, 2010
  Sustainable Forestry Initiative 2010 Annual Conference
  Vancouver, BC
• October 6 - 8, 2010
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