Softwood lumber production in the US increases, while output in Canada goes down

Softwood lumber production in the US increases, while output in Canada goes down

U.S. sawmills produced 14.752 billion board ft. (bbf) of softwood lumber in the first five months of 2018, a 5.9% increase from output of 13.937 bbf in the same period last year.

Western U.S. sawmills accounted for 6.180 bbf to the five-month total, up 8.9% from 5.677 bbf a year earlier, while output at southern U.S. sawmills was up 3.6% to 7.876 bbf from 7.600 bbf, , the Western Wood Products Assn. reported in its latest Lumber Track report.

In May alone, production by U.S. sawmills was 3.173 bbf, up 7.3% year-over-year from 2.957 bbf, and up 5.3% from 3.014 bbf in April 2018.

Western U.S. sawmills contributed 1.281 bbf to May’s production volume, up 4.9% from 1.222 bbf in the previous year, and up 3.7% from 1.236 bbf in the month before.

Southern U.S. sawmills produced 1.742 bbf towards the monthly total, a 9.2% year-over-year gain from 1.595 bbf, and up 6.5% from 1.636 bbf in April 2018.

Apparent U.S. softwood lumber consumption was 20.125 bbf in the first five months, an increase of 1.1% from 19.909 bbf in the same period last year. In May, consumption was 4.444 bbf, up 8.4% from 4.100 bbf in May 2017, and 6.5% higher than consumption in April 2018 of 4.173 bbf.

Canadian softwood lumber production/consumption

In the first five months, Canadian sawmills produced 12.014 bbf of softwood lumber, a drop of 1.4% from 12.182 bbf in the same period last year. British Columbia producers contributed 5,360 bbf to the five-month total, down 4.5% year-over-year from 5.611 bbf, while sawmills east of the Rockies produced 6.654 bbf, an increase of 1.3% from 6.571 bbf a year ago.

Canadian production volumes in May were 2.481 bbf, a 2.0% year-over-year decline from 2.531 bbf in May 2017, but up 0.9% from 2.459 bbf in the previous month.

British Columbia’s softwood lumber producers contributed 1.100 bbf to May’s volume, down 5.1% from 1.160 bbf in May 2017, and 2.0% lower than output in April 2018 of 1.123 bbf. Sawmills east of the Rockies in May produced 1.380 bbf, a slight 0.7% increase from 1.371 bbf in May last year, and up 3.3% from the 1.337 bbf produced in the month before.

Apparent Canadian softwood lumber consumption for the first five months of this year surged 15.1% to 4.532 bbf from 3.936 bbf last year. In May alone, Canadian consumption was 973 million board ft. (mmbf), up 2.7% from 947 mmbf in May 2017, and 4.1% higher than the previous month’s apparent consumption of 935 mmbf.

U.S. and Canada utilization/inventories

U.S. production as a percentage of practical capacity averaged 86% in the first five months of 2018, up from 84% last year, while Canada’s average was 90%, down from 93% in the first five months of 2017.

U.S. inventories for the year to May 31 advanced 1.7% to 2.948 bbf from 2.899 bbf a year earlier, while Canadian inventories gained 12.6%, rising to 3.593 bbf from 3.191 bbf.

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