Despite a slight decline from the recordbreaking total of 2021, worldwide sales of American softwood lumber in 2022 were a respectable US$936m.
Export sales of Douglas fir reached a record US$195m, up from US$170m in 2021. Including plywood, treated lumber, veneers and mouldings, total world sales were US$1.37bn.
The US remains the world’s leading softwood exporter. For the first time, sales to Mexico were higher at US$283m than to Canada at US$264m. Sales to Japan at US$72m recorded a healthy increase over 2021. Egyptian sales held up remarkably well in the face of currency problems at US$10m. Plywood showed great resilience with sales of US$160m as did treated lumber with sales of US$145m, with the Caribbean and Mexico being the main markets. In Europe, the Netherlands provided robust sales of treated lumber of US$9m. World sales of softwood windows and frames were US$63m, with softwood veneers at US$37m.
The top three US softwood species/species groups imported to Europe (including the UK) since 2019 are:
- southern yellow pine: 31%
- Sitka spruce: 27%
- lodgepole pine: 15%
US softwood lumber exports to Europe overall have been on a roller coaster since 2019, posting a 23% decrease from 2019 to 2020, then a 56% increase as the economy reopened, post-Covid, in 2021. 2022 saw an 18% drop, but in January and February 2023 there were more positive signs, with a 19% increase over the same two months in 2022.
Southern yellow pine (SYP) remains the most imported US softwood throughout Europe, with sales of US$8.3m in 2022. Sitka spruce followed closely with US$5.6m. It is worth noting, though, that SYP imports were down 5% in 2020 compared to 2019, and, despite a 23.8% increase in 2021, were down 25% in 2022.
Examining the final destinations of American softwoods, Italy is consistently the largest importer, with sales of US$6.7m in 2022. Germany was second in 2022, with sales of US$6.5m and the UK third biggest. France and Spain round out the top five importers of American softwoods, with US$3.4m and US$2.6m respectively.
One of the key factors that has influenced US softwood imports is the ongoing conflict in Ukraine. This led to a significant deterioration in relations between Russia and the West, including the US, with several rounds of economic sanctions imposed on the former. One of the effects of these sanctions has been to limit Russia’s ability to export softwood lumber to Europe, which traditionally has been one of the largest markets for Russian forest products.
The aging housing inventory will continue to drive long-term maintenance and renovation expenditures. With higher mortgage interest rates, homeowners are more likely to repair and remodel than buy new houses or move house. Near-term obstacles such as escalating interest rates, ongoing geopolitical issues, and inflationary pressures may cause a brief deceleration in demand. Nevertheless, the wood products industry is familiar with challenging and changing market conditions, and the North American wood products industry is well-positioned to navigate challenges while leveraging the ongoing capital investments to ensure adequate supply.
US IMPORTS FROM EUROPE
Softwood lumber exports from Europe to the US have been on a steady rise for the past four years, up 125% from 2.1 million m3 in 2019 to 4.8 million m3 in 2022. Spruce makes up the majority of imports with 3.2 million m3 in 2022, followed by SPF mix and other pine. Germany leads the way with 2.2 million m3, a 95% increase over 2019, followed by Sweden at 945,000m3 in 2022 (a 136% increase over 2019), and Romania with 538,000m3 in 2022, a 255% increase over the four-year period.
SOUTHERN PINE RECORD
Southern pine lumber shipments in 2022 recorded an increase from the previous year for the 13th consecutive year, according to the Southern Forest Products Association (SFPA), which tabulates shipment totals with the Southern Pine Inspection Bureau (SPIB) and Timber Products Inspection (TP).
The SFPA also reports that 2022 was the third straight year of shipments above the 47 million m3 mark, starting with 49 million m3 in 2020.
2022 southern pine lumber shipments totalled 52.2 million m3, a 5.5% increase over the volume shipped in 2021 (49.3 million m3). They have been on an increase since 2009, when shipments totalled 27.8 million m3, down from 34.4 million m3 in 2008.
“The SFPA, in conjunction with our members, especially our lumber manufacturing members, and the SPIB and TP, couldn’t be more excited to see this record growth,” said SFPA executive director Eric Gee. “If there’s any question about the demand for southern pine, the 2022 shipment report confirms its popularity among global design and construction professionals.”
This record – and three-year increase – also supports the message that, as a naturally renewable resource, wood is recognised as the most environmentally friendly, easily accessible, and among the most trusted materials available for building homes or businesses, Mr Gee said.
The 2022 record is the longest consecutive growth in shipments since record keeping began in 1915. The next closest stretch of consecutive growth was a five-year span from 1974 (16.3 million m3) to 1979 (21.2 million m3).
“We are pleased with the record sales of Douglas fir in world markets in 2022 and we look forward to building on this success with further gains in 2023,” said Rose Braden, Softwood Export Council president. “Our members are excited to be travelling to trade shows again after the Covid break. 2023 has started brightly with shows in India and Dubai demonstrating a renewed interest in western species.”
US CONSUMPTION
Wood manufacturers see their lumber, OSB and wood panel products being used in the US domestic market primarily for residential construction, repair and remodelling, and industrial applications.
The seasonally adjusted annualised rate of US housing starts stood at 1.42 million units, while permits were issued for 1.41 million units, according to March 2023 data from the US Census Bureau. Interest rate hikes are creating short-term obstacles to new home construction and housing affordability, but US unemployment remains relatively low.
Furthermore, central bankers throughout North America and Europe have suggested the current cycle of rate hikes may be reaching its end. However, should the broader economy slow down, or interest rates remain high or rise beyond current expectations, it may adversely affect consumer sentiment and housing affordability, leading to a drop in demand for new home construction and wood building products in the near future.
While there are potential challenges, it’s worth noting the US lumber industry is seeing an unprecedented surge in adoption of new technology to streamline the manufacturing process, while investment is rising in research to explore sustainability solutions, underpinning wood’s reputation as the carbon-neutral/carbon-zero option of choice among building products and materials.
