Wood Exports to China Hit New Highs

Tuesday, February 22, 2011 09:56 AM

Victoria, B.C.- For the first time, China is the number-one overseas destination for B.C. lumber in terms of value as well as volume, Minister of Forests, Mines and Lands Pat Bell announced following a record-breaking month
and year for exports to China.

B.C. lumber exports to China for 2010 are valued at about $687 million, more than double the value of shipments in 2009 and, for the first time, exceed the value of softwood products shipped to Japan.

"We are seeing huge jumps in the value of softwood products going to China as they continue to place larger orders for higher quality and better grades of lumber," said Bell. "December shipments alone worth nearly $107 million
capped a sales year that goes in the ledger as the best ever for B.C. lumber exports to China. It's the fifth year in a row that we have set new annual highs for both volume and value."

B.C. exported approximately 4.6 million cubic metres (an estimated 2.8 billion board feet) of softwood lumber products to China in 2010, an increase of 76 per cent from 2009.

The newest project in B.C.'s marketing strategy is a demonstration for the March 28-30 Green Building Show in Beijing. A three-storey, nine-unit prefabricated apartment will be assembled in a 72-hour window to highlight
the speed and ease of building with wood.

"Thousands of designers, builders and architects will see a full-scale apartment structure created in less than three days from prefabricated walls, floors and trusses," said Bell, who will attend the Green Building Show.
"This innovative display will ensure wood-frame construction is central to the discussions on solutions for sustainable housing in China."

Opening up and expanding markets for B.C. wood products, particularly exports to China, is vital for a stronger and more diversified forest sector.

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Posted on Tuesday, February 22, 2011 09:56 AM in News by 250 News

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Comments

Posted by: He spoke on February 22 2011 10:22 AM

Thank you Pat,

I hope the Liberal Regime survives this. I hope you survive in your post. You are a hard working man, that remains focussed in bringing in the business to the interior of BC.

Should be an interesting weekend, to find out who our Exulted Ruler is going to be.

Posted by: gus on February 22 2011 10:33 AM

Hopefully the one from an Interior community. Not one of the other wanna bees who are really from the lower mainland.

Posted by: Brian S on February 22 2011 10:41 AM

As much as I am challenged about some of the issues with our provincial government, I agree with the above post. This is a good news story that gets better with each passing month. Pat Bell has worked very hard at promoting the use of BC wood products in China. It does not seem to matter where or what Pat Bell is talking about or to whatever group or individual is his audience might be, more often than not the promotion of BC wood products in China is talked about.

If we did not have the current level of wood exports to China there is no doubt there would be less folks working in the Forest industry period! Our region cannot afford to sit back and wait for opportunities to fall into our laps and if we do our future is not as bright as it could be..

Brian Skakun

Posted by: gus on February 22 2011 12:27 PM

"Our region cannot afford to sit back and wait for opportunities to fall into our laps and if we do our future is not as bright as it could be.. "

Totally agree!!!!!

I wonder if Pat could teach a few others who could be in the drivers seat how it is done. :-)

Posted by: opine on February 22 2011 1:41 PM

I am truly impressed.

A story about lumber and politicians in the same article and not a negative word to be said.

My faith in 'ye posters' has been renewed.

Good job Pat!

Posted by: NoSeverance on February 22 2011 4:49 PM

The next thing on Pats list should be to get Canfor with all their profits to pay out the severance to those employees that they threw away.

Canfor is looking to purchase other operations when they have mills that are shutdown indefinately?

Start up the ones you have or pay them out!

Get on that Pat! PLEASE.

Canfor intends to spend a total of $145 million on capital expenditures in 2011 and it is ready to look for new acquisitions "wherever they may occur," he said.

Read more: http://www.vancouversun.com/business/Canfor+emerges+from+lumber+downturn+with+confidence/4284456/story.html#ixzz1EjqzxWdf

Posted by: my2bits on February 22 2011 5:57 PM

Why don't they separate the amounts for lumber, and those for raw logs??

Posted by: szd on February 22 2011 6:24 PM

my2bits: because the native type people don't want you to know how much they are making by exporting raw logs and jobs to foreign countries. They are by far and large the biggest exporter of raw logs. Let sleeping dogs lie is the motto around here when it comes to touchy subjects such as yours. Canfor and Westfraser are exporting lumber through the Port of Prince Rupert.

Posted by: Palopu on February 22 2011 9:19 PM

You will notice by the graph, that the housing market in the USA was great from 2005-2007, then it went bust. The Chinese market picked up after that,2008-2010.

There are a number of reasons for the big increases in sales to China, the major one being that there is no softwood lumber agreement to worry about when you sell to China, and no fear or reprisals if you get cheap stumpage rates.

To look at sales to China in terms of volume, ie; FBM doesnt tell the whole story. The lumber going through the Port of Prince Rupert for the most part is mill run rough (not planed) lumber from Quesnel, and it is used for concrete forming etc; So in effect you have a huge increase in volume to China, but because it is low priced lumber you dont make as much money.

However if it keeps the mills running even though they are being subsidized with low stumpage, then I guess we should be happy, at least its better than having the wood rot in the bush.

The price of lumber started to rise in late 2010 and is still around $300.00 per 1000fbm for lumber sold to the USA. If the price continues to rise you will start to see a significant decrease in lumber to China, and an increase to the USA.

When that happens (and it will) then how will you explain the huge decrease in sales to China??????

Posted by: joeytree on February 23 2011 4:47 PM

what all you guys have to understand is

the US market is soooooo fragile.
their normal housing starts per year should be 1.5million units a year.

in 2008, it crashed to 900,000 starts
in 2009, 540,000 start

at 540,000 starts North American lumber demand is about 45 billion board feet.
this is equivalent to about 150 medium sized SPF mills (150 mills x 300 MMfbm annual production).

Well guess what...US sawmill capacity is about about 40 billion board feet.

so based on 500-600,000 starts..the US is almost self sufficient in lumber.
THEY DONT NEED US!!!!

that is why they are trying to claim penalties on the current softwood lumber agreement. they dont really need our lumber at this housing start level.

the US housing start forecast in 2011 is maybe 700-800 ,000 starts tops.

the SPF market in China is in its infancy.
it will take more time to develop but i think we all have to be patient while waiting for the US market to recover and the Chinese market to mature. until then we should just appreciate we have an "option" that provides a price floor, allows people to work at least on one shift or maybe 2 shifts which keeps unit conversion prices reasonable. having an order file with US and China customers allows mills to push up prices in high building seasons but the bottom line is with only 700,000 starts....there is EXTRA lumber on the market , especially in the higher spf grades so we have to be sure we maintain this delicate balance
just my opinion
btw..the US mills are now pushing lots of wood into China...the ports of Tacoma and Portland are reaching capacity in terms of lumber handling capacity.