Lumber Prices Touched Unprecedented Highs in Q2 This Year

SEATTLE (Scrap Monster): The latest edition of Wood Resources International (WRI) Insights stated that the record-high lumber prices in the U.S. have shifted lumber trade flow during the initial half of the current year.

The lumber prices touched unprecedented highs in Q2 this year. For instance, the price of southern yellow pine surged higher by nearly four times, compared with the 20-year average prices. Meantime, the costs for sawlogs have witnessed only small adjustments in the key lumber-producing regions of North America. Both the above have led to record-high profits for lumber companies across the continent.

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The lumber exports from the U.S. and Canada witnessed decline, owing to strong demand from local market. Meantime, there was a substantial rise in lumber exports from Europe, especially from Sweden and Germany into the U.S. during the initial six-month period of 2021.  The average export prices in Sweden and Germany surged higher by 83% and 93% respectively in May this year, compared with the same month a year before.

The softwood lumber imports by China registered year-on-year decline by 24% in H1 2021. The import volumes touched the lowest level in six years. The supply from all countries except Ukraine witnessed decline. On the contrary, importation from Chile and Russia remained more or less flat.