Fresh data out this week from Canada, British Columbia, Alberta, and the US Census gives a good picture of the state of forest products manufacturing sales and exports in North America so far this year.
Data released by the BC Ministry of Forests, Lands, and Natural Resource Operations department of Log Export and Economic Analysis Tuesday shows that BC forest product exports for January to April 2015 totalled $4.28 billion, up 12.7 per cent, from $3.80 billion for the same time last year. The share of export value by market starts with the US at 46.2 per cent, up from 45.4 per cent in January to April 2014, China + Hong Kong at 30.9 per cent, up from 29.6 per cent, and Japan at 9.2 per cent, down from 10.9 per cent for the first four months of last year.
By product, the share of export value is Softwood Lumber at 46.2 per cent for January to April 2015, up from 43.8 per cent, and Pulp at 25.3 per cent, down from 25.9 per cent.
Out Monday, the latest numbers indicate that Alberta’s forest industry is continuing to grow and contribute to the province’s economic diversity. Values of lumber, pulp and paper, and panelboard manufactured by Alberta Forest Products Association (AFPA) members totalled $2.9 billion in 2014 said an agency press release. The numbers reflect a 7.7 per cent increase from 2013. Industry growth was fuelled by a 12 per cent increase in revenue from lumber sales and a 6 per cent increase in pulp sales.
AFPA-member companies produced 3.3 billion board feet of lumber in 2014, with a value of $1.3 billion. Part of this production came from the secondary manufacturing sector, said the AFPA. Compared to 2013, production volume increased by 101 million board feet, or 3.2 per cent, and values climbed by $135 million, or 11.5 per cent.
Nationally, Statistics Canada data out Thursday shows the total value of exports by Canadian sawmills (excepting Shake and Shingle mills) for January to April was $3,040 billion, a 15.3 per cent increase over $2,637 billion the previous year. Canadian lumber exports to the US increased by 13.3 per cent, to $2,018 billion for the first four months of 2014. Exports to China were also up, by 20.1 per cent, to $481 million, compared to $400.8 million in 2014.
In the US meanwhile, sawmill products exports to China for January to April 2015 dropped by 17.1 per cent, to US$387 million, from US$467 million, as demand for new home building projects continue to consume domestic lumber production. US sawmill product exports to Japan remained almost even compared to the first four months of 2014, at US$113 million.
US sawmill products imports from Canada for January to April 2015 also remained almost flat compared to the previous year, at US$1,654 million, according to the latest US Census data.
Back across the border, Export Development Canada’s (EDC) Export Performance Monitor for June 2015 shows Canadian Forestry Products exports fell by 5 per cent in April compared to March 2015 but grew by 10.5 per cent compared to the first four months of the previous year.
North American Lumber Exports
As well, according to EDC’s Spring 2015 Global Export Forecast, released May 26, Canada’s exports of forest products for 2014 totalled $32.5 billion and are projected to grow by 7 per cent this year and 3 per cent in 2016.
“The relative weakness of the Canadian dollar is boosting the competitiveness of Canadian firms and combining with strong US economic and housing growth to deliver 7 per cent growth in Canadian forestry exports in 2015,” details the EDC report. “As the currency effect fades in 2016 and fibre supply in British Columbia is affected by the legacy of the mountain pine beetle, export growth is forecast to slow to 3 per cent in 2016.”
“Pulp and paper exports are expected to be relatively robust in 2015 as the low Canadian dollar provides companies with a competitive edge compared with US firms. Though the overall North American newsprint market is expected to shrink, Canada’s share is forecast to increase,” said the EDC report.