Demand rises for softwood lumber

The latest report from Wood Resource Quarterly points to a busy six months for the softwood lumber trade, with global shipments up 7% year-over-year in the first half of 2014.

Also indicated is an increase in shipments for most of the major exporting countries (with the exception of New Zealand). Roughly one-third of the global lumber output is traded internationally.

Especially strong this year is activity in Russia, where production reached record levels at exporting sawmills (up 15% year-over-year). Much of the increase in shipments has gone to China, Egypt and the CIS countries.

Additionally, Sweden and Germany may reach their highest levels of export volumes in at least seven years provided demand stays strong.

In China, Russia and Canada remain the two biggest suppliers (accounting for 77% of imports).

The increased pace overall is part of a longer trajectory of global demand rising steadily since the recession -- shipments in 2014 are on track to reach their highest level since 2006.