By Sam Sherrill, Deputy Editor, Crow's, RISI
PORTLAND, OR,
June 16, 2008 (RISI) -
In the first four months of this year, the U.S. has imported a total of 14.6 million m3 of forest products. This volume includes everything from doors to matchsticks, mouldings to cooperage. Despite the impressive sound of the number, it is almost 32% less than the volume of forest products imported during the first four months of 2007. It is rendered almost insignificant when compared with the 27.9 million m3 imported during the first four months of 2006. Not coincidentally, perhaps, the 49.6% drop from the 2006 volume tracks very closely with the decline in housing since January 2006, when the housing boom began to go bust.
But to draw a direct parallel between housing and all forest products is inaccurate, however interesting it becomes in this instance. Without question, housing plays largely in the matter of imports, particularly commodities imports such as plywood, lumber—especially from Canada—and finger joint mouldings. Some of the countries that export these products also figure largely in the door and window markets, as well.
Housing has played a harsh role in reducing wood products imports, enough so that when housing does rebound some industry observers have voiced serious reservations with regard to offshore suppliers. So depleted have they become because of the current market downturn, finding sufficient supplies could be a major problem.
This is an excerpt of a story that appears in Crow's Weekly Market Report, the longest-running source of pricing and market reports for the North American lumber and panel industry.
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