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March 10, 2017

US sawmills increased their softwood lumber output y-o-y

U.S. softwood sawmills increased production by 3.4% in 2016 to 32.722 billion board ft. (bbf), up from a full-year total of 31.643 bbf in 2015.

Of the 2016 total, Western U.S. sawmills accounted for 13.884 bbf, an increase of 2.6% from 13.531 bbf in 2015, while sawmills in the South contributed 17.342 bbf – up 4.1% from 16.661 bbf, according to data released on March 8 by the Western Wood Products Assn. (WWPA) of Portland, Oregon.

In December alone, U.S. sawmills produced 2.459 bbf, a decline of 2.4% from 2.521 bbf in December 2015, and down 7.3% from output in November 2016 of 2.653 bbf, WWPA reported.

Western sawmills contributed 1.055 bbf to December’s production, a year-over-year increase of 0.7% from 1.047 bbf, but down 6.3% from production in November of 1.126 bbf.

Sawmills in the South produced 1.292 bbf in December, down 4.9% from 1.358 bbf in December 2015, and down 8.1% from November’s production volume of 1.406 bbf.

Apparent U.S. softwood lumber consumption increased by 9.7% to 48.341 bbf in 2016 from 44.082 bbf in 2015. In December, consumption was 3.614 bbf - up 1.2% from 3.572 bbf in December 2015, but down 4.9% from 3.801 bbf in the month before.

Canadian softwood lumber production/consumption

Canadian sawmills produced 28.335 bbf of softwood lumber in 2016, up 6.2% from 26.687 bbf in the previous year.

Sawmills in British Columbia accounted for 13.559 bbf of the year’s production, an increase of 2.6% from 13.214 bbf in 2015. Sawmills East of the Rockies contributed 14.775 bbf, up 9.7% from 13.473 bbf in 2015.

In December 2016, Canadian sawmills produced 2.023 bbf, a year-over-year drop of 7.8% from 2.193 bbf, and down 18.9% from November’s production volume of 2.493 bbf.

Sawmills in British Columbia produced 937 million board ft. (mmbf) of softwood lumber in December, a 13.9% drop from 1.089 bbf in December 2015 and down 18.1% from 1.145 bbf in the previous month. Sawmills East of the Rockies produced 1.085 bbf in December, a year-over-year drop of 1.7% from 1.104 bbf, and down 19.5% from 1.349 bbf in November.

Apparent Canadian softwood lumber consumption advanced 8.8% to 9.557 bbf in 2016, up 8.8% from 8.787 bbf in 2015. Consumption in December at 569 mmbf was down 11.8% from 645 mmbf a year earlier, and down 39.9% from 946 mmbf in November.

U.S. and Canada utilization/inventories

U.S. production as a percentage of total capacity averaged 86% in 2016, up from 83% in 2015, while the percentage in Canada rose to 90% from 86%.

U.S. inventories dropped 1.6% in December 2016 to 3.009 bbf from 3.060 bbf in December 2015, while Canadian inventories fell 4.0% to 2.840 bbf from 2.957 bbf.

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