Lumber Futures May Rise in 2012 on Increased Log and Lumber Imports by China

Lumber futures may rise in 2012 on increased log and lumber imports by China, the world's largest purchaser, and a positive housing outlook in the U. S., said Hakan Ekstrom, president of Wood Resources International LLC. China increased imports of logs and lumber by 37 per cent in 2011 to a combined 46.3 million cubic metres (1.64 billion cubic feet), Ekstrom said Wednesday by email. Wood Resources is a Bothell, Wash. -based industry researcher that has tracked wood prices since 1988. The value of the imports rose 57 per cent to $8 billion last year, he said in a report. Lumber futures may rise as much as 15 per cent this year from $261.10 per 1, 000 board feet, the price at the end of 2011 in Chicago, Ekstrom said. Canada, the world's biggest exporter of lumber, shipped as much wood to China as it did to the U. S. Last year, indicating a shift in demand, said Paul Quinn, an analyst at RBC Capital Markets in Vancouver. Source:edmontonjournal.com