Northwest Economy
2:01 pm
Fri April 1, 2011

Booming demand from China for Northwest logs & lumber

There’s good news and bad news for logging and saw-milling jobs in the Northwest. The bad news is new figures out show construction spending dropped in February to the lowest level in more than a decade. The good news is that timber demand from China is soaring.

Russia has traditionally been China’s main wood supplier. An export tax by the Russians combined with the expanding Chinese economy has created an opening for exporters on the West Coast.

The Vancouver, BC-based International Wood Markets Group estimates log exports to China from the U.S. rose more than 100% over the past year. Vice president Gerry Van Leeuwen calls lumber and log exports to China “a savior” for the North American timber industry.

“If China wasn’t there today, and this is crude simplification, there would be 30 sawmills in WA, BC, and Oregon not operating. There would be many, many loggers not working because there’s no market,” says Leeuwen.

Van Leeuwen says the export upswing has a downside for sawmills focused on the U.S. market. They’re having to pay higher prices for raw logs because of competition with export buyers.