Panels & Furniture Asia March/April 2018

48 MATERIALS
HARDWOOD MARKET REPORT
By Judd Johnson, Hardwood Market Report
Figure 1: Consumption of U.S. hardwood lumber by major market groups
Figure 2: U.S. exports of hardwood logs (in cubic metres)
Demand for U.S. hardwood grade
lumber increased last year. Much
of the growth was anticipated
based on positive performance by key
indicators leading up to the start of 2017.
The economy, residential construction,
manufacturing sentiment, and consumer
spending are among the measures
commonly used to assess business
direction. Evaluated data include the U.S.,
China, and other international markets
that have influence on U.S. hardwood
demand. U.S. consumption of grade
hardwood lumber increased four per cent
in 2017. U.S. exports of grade hardwood
lumber increased 13 per cent to 4.5 million
M 3 . China and Vietnam accounted for more
than 2.4 million M 3 (54%) and 448,000 M 3
(10%) of US exports, respectively.
Consumption of U.S. industrial
hardwood products decreased in 2017
from 2016, though by Q3, demand had
begun to rebound. Compared to the HMR
Executive® mid-year market analysis (July
2017), U.S. consumption of industrial
hardwood lumber ended last year 295,000
M 3 higher than was projected by January
to June data. The timing of the upturn
in demand for industrial products was
not anticipated. The short-term impact
contributed to supply strains. However,
the longer-term effect from improved
industrial markets can help strengthen U.S.
hardwood supplies (see Fig. 1).
The same key performance indicators
used to project 2017 results were still
trending upward at the start of 2018.
When considering this information along
with current market trends, it is reasonable
to expect demand for U.S. hardwood
lumber to increase over last year. That
is the mindset of U.S. hardwood lumber
producers. As such, it is reasonable to
expect U.S. hardwood lumber production
to increase.
March / April 2018 • Issue 2 • PANELS & FURNITURE ASIA