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A thread 
on #Lumber and #Timber to hopefully add some context of the larger global market. (I’ll do logs in a separate ) $LBS
on #Lumber and #Timber to hopefully add some context of the larger global market. (I’ll do logs in a separate ) $LBS
China is the largest global consumer of Sawnwood (27%) followed by USA (21%), Germany (4%), Canada (3%), Japan (3%).
http://www.fao.org/forestry/statistics/80938@180723/en/
http://www.fao.org/forestry/statistics/80938@180723/en/
China is the largest global producer of Sawnwood (18%), followed by the USA (17%), Russia (9%), Canada (9%), Germany (5%), Sweden (4%).
http://www.fao.org/forestry/statistics/80938@180723/en/
http://www.fao.org/forestry/statistics/80938@180723/en/
Buyers in the PNW typically get their wood from an ~800 mile radius.
Buyers in the Southeast typically get their wood from a ~2500 mile radius.
But Buyers in China & India get their wood from every corner of the planet.
Buyers in the Southeast typically get their wood from a ~2500 mile radius.
But Buyers in China & India get their wood from every corner of the planet.
When prices in North America rise, Buyers in China and India shift their purchases to markets where the price is lower.
Large producers in NA use these markets as strategy to balance supply/demand in the highest paying market (the USA).
This is an important factor to consider, when speculating about what might happen next in #Lumber. $LBS
US production will continue to climb, while Canada’s continue to decline.
Imports will play an important role in the interim.
Where will supply come from? Capacity remains an issue in the near term.
