34 PalletCentral • January-February 2016 palletcentral.com
igher North American softwood lumber production and weaker
exports to China left the domestic market for low-grade lumber
oversupplied and prices soft for much of 2015. Many U.S. pallet
manufacturers found #3 and #4 Common lumber abundant and
inexpensive into early fall. In the fourth quarter, however, buyers
reentered markets, production moderated and prices rallied. This
article will examine supply and demand trends in 2015 that may offer a glimpse of what
lies ahead in 2016.
Abundant and Inexpensive
U.S. softwood lumber production was up 2.0% on the year through September 2015
to 24.18 billion board feet (BBF), an eight-year high for that period, according to
Random Lengths. Statistics Canada reported year-to-date Canadian production of 19.85
BBF through September, a 6.8% increase from the prior year, and that inventories were
11.0% higher in September 2015 than one year earlier.
Supply Picture
MARKETS
The
Softwood
By Andy Johnson
H