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Lumber Exports to China Looking Good

By 250 News

Monday, July 26, 2010 10:53 AM

Prince George, B.C. –  There are positive signs for the growth of lumber exports to China.

Minster of Forests and Range, Pat Bell, says that as of the end of May, B.C. had exported 840 million board feet of lumber, that’s a 63% increase from last year. “It would look like we are on track to top two billion board feet this year and that is the equivalent of the output of about 10 sawmills”

Bell says the Wood Markets Organization recently released a report which painted a very rosy picture for export growth to China. 

The report says it expects the market can be doubled by 2013, and the price will increase by 5% per year.


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Comments

Is that lumber or the equivalent in logs. If its logs then a lot of jobs are lost.
It's lumber. Quesnel sawmill ships 100% to China and I'm sure there are others.
This is good news to us. we just need more of this kind of arrangements.

China wants our resources, we just have to make it value added. This way we employ people.
The USA and New Zealand are identified in the linked article as meeting the log demand resulting from the expected loss of logs from Russia. Canada is not mentioned. That does not mean that exports from Canada to China have not increased, but it is highly unlikely that they increased substantially.

http://www.cunninghamreport.com/news_item.php?id=1287
http://www.odt.co.nz/news/business/96648/log-exports-look-set-double

The story from New Zealand.

We have to remember, we are not the only place with trees.

Maybe we need to get together and form a lumber cartel, the same as the oil rich countries did. Otherwise we stand to lose out on both the raw material supply as well as the sawn lumber supply.
http://tdn.com/news/local/article_cf15c3a2-5efc-11df-9a4f-001cc4c03286.html

Some more info contained in that article from the USA

1.China is starting to plant its own forests of fast-growing trees, but they are too young to harvest.

2.Lumber exports to China are also skyrocketing.

In 2009, U.S. lumber exports to China jumped 72 percent from the previous year

CANADIAN EXPORTS rose 123 percent
It is my understanding since I can remember that we only sent Japan and the US our flawless and first class lumber. And only first class, thereby leaving third class and factory seconds kind of lumber to be sold here in BC. I remember going to Beaver Lumber for 1X6 boards and 90% were just first class firewood. China gonna get our good lumber and still leave us with overpriced crap? We will see again.
The equivalent output of about 10 Sawmills. What 10 sawmills would that be.????

We know that Quesnel has one mill that is sending all its lumber to China, however it is Mill Run Lumber and doesnt get top dollar.

It also says that the price will increase 5% per year until 2013, however as usual is doesnt say what the price is that they are getting to-day. You can rest assured that the price that China pays is nowhere near what the USA or Japan Pays, and the quality of the lumber sold to China is not as good as that sold to the USA or Japan. I could predict that the price to Japan and the USA will probably increase 5% per year between now and 2013, considering that the market is depressed at present.

In 2009 BC sold more lumber to China, that Japan, however it received more money on the sales to Japan.

So the question is, what is the price per 1000 FBM US to China, and how does this compare to lumber sold to the USA and Japan.

Gus????????
" You can rest assured that the price that China pays is nowhere near what the USA or Japan Pays, and the quality of the lumber sold to China is not as good as that sold to the USA or Japan."

sooo - they pay less for a lower grade product, just like everything and everyone else in the world... your point is?
I drove through Terrace today, in the old Skeena Cellulose yard there is now a debarker. The logs are debarked, then cut in container lengths to be shipped to China. The mill shut down and was auctioned off a few years ago, partially because of lack of timber supply. This is beautiful timber, it would make the mills in P.G. and Quesnel cry.

On the other side of town toward Prince Rupert, the West Fraser Mill sits idle. Directly across the highway from it are piles of logs, cut in container lengths, also destined for China.

Now what's wrong with this picture?
http://www.ic.gc.ca/sc_mrkti/tdst/tdo/tdo.php#tag

That is a link to Industry Canada which generates custom reports addressing the format you want it in. It does not provide unit measures of products though, just dollars.

If you put in HS440710 for the product code you will get coniferous lumber greater than 6mm thick. You can ask for exports from BC and to "all countries" detailed for a specified period. 5 years will provide a bit of history.

from 2005 to 2009

for China - I believe similar pricing as USA
2005 - $54.5 million
2006 - $65.3
2007 - $98.7
2008 - $177.5
2009 - $317.8 - increase of 483% over 5 years

for Japan - higher grade and higher unit price
$969,051,362
$988,739,660
$741,605,622
$721,074,140
$531,832,543 decrease of 45% over 5 years

for USA
$4,805,537,024
$4,323,294,089
$3,376,952,346
$2,193,889,589
$1,542,556,548 decrease of 68% over 5 years
COFI is another source for statistics, although somewhat dated.

This is their data site:
http://www.cofi.org/library_and_resources/default.htm

Here is their BC log export data to 2005
http://www.cofi.org/library_and_resources/statistics/documents/BC_log_exports.pdf
The USA and Japan together took 80% of the total shipments. 4.7 million cubic metres.
http://www.bcstats.gov.bc.ca/data/bus_stat/busind/trade/SWLdest.asp

Okay, that is finally what I was looking for. It provides price plus quantity.

Download the spreadsheet and it will provide info of destination with cost + quantity.
Okay, here is some info on unit price, volume, and dollar value of softwood lumber exports from BC for 2009.

Cost per cubic metre from lowest unit cost to highest

China $125.73
usa $130.05
mexico $132.87
Taiwan $134.30
M East $141.51
S Korea $148.34
HK $153.99
S America $163.71
India $180.68
Japan $267.67
SE Asia $281.20
C America $407.88
E Europe $686.94
W Europe $693.03
Africa $861.57
-------------------------

Total volume shipped (lumber, not logs) from highest to lowest

usa 11,861,087
China 2,507,763
Japan 1,986,362
S Korea 233,004
Taiwan 229,047
W Europe 220,231
M East 215,626
SE Asia 127,396
HK 80,795
mexico 20,024
S America 5,242
India 4,488
E Europe 1,254
C America 639
Africa 309
-----------------

Total value shipped from highest to lowest
usa $1,542,556,548
Japan $531,680,056
China $315,293,446
W Europe $152,625,772
SE Asia $35,824,018
S Korea $34,564,036
Taiwan $30,761,104
M East $30,512,410
HK $12,441,331
mexico $2,660,527
E Europe $861,426
S America $858,176
India $810,879
Africa $266,224
C America $260,635
Total $2.7 billion shipped in 2009

total to USA alone .... just to show what impact the loss of a dominant client has on BC lumber industry....

2009 $1,542,556,548
2008 $2,193,889,589
2007 $3,376,875,570
2006 $4,322,666,733
2005 $4,805,107,483
2004 $5,078,942,530
2003 $3,672,858,089
2002 $4,621,683,016
2001 $4,786,346,852
2000 $4,619,928,011
1999 $5,250,432,263
1998 $4,628,799,793
1997 $5,076,848,465
1996 $4,765,289,250
1995 $4,160,691,701
1994 $4,737,189,143
1993 $3,883,071,469
1992 $2,659,248,203
1991 $1,935,382,343
1990 $1,963,566,188
1989 $2,417,852,858
1988 $2,390,466,518
I noticed last week that Canfor Mackenzie took down their Canfor flag and put up a Japanese flag. Now they have a Canadian flag, a union flag, and a Japanese flag flying at their mill? Not sure if they are partnering with the Japanese now... it would make sense as Mackenzie has the best wood fiber in the province and the Japanese want quality. I find it interesting in that next door you have the Chinese getting the split off product in the chips for their pulp operations. They will need to get along I guess....
Usually they put a japanese flag up when they have Japanese investors touring the mill.

Rick Jeffery Coast Forest Products Assoc.

**The Chinese are buying the Coast's low-valued lumber, which is a perfect fit srategically with Coast's Japanese market, which buys high-quality wood.**

**Coastal mills are able to generate more revenue from a single log as a result**

**We are selling them lower-grade products that are the fall-down from Japanese production but moving into the future, as we work with them to show them the value of using wood, we can get them to begin using higher grades of wood, which brings higher revenues. That will allow us to maybe consider bringing new capacity online**

Chinese sawmill workers re-saw the low-grade boards then glue and laminate them together again to make a higher-grade product.

Canfor spokesman Dave Lefebvre said much of the increased demand is coming at the expense of Russian lumber.

My point is that once the American housing market recovers, and the Japanese recession eases, the bulk of BC production will revert to the USA and Japan (Higher revenue) and China will revert to Russia for lumber because they are not likely to pay the higher prices.

So it seems at present we are all using each other to get by with the hope that the market turns around.