stays at record pace

A MERICA'S appetite for lumber ll.products continues to grow. with lumber demand in 1999 expected to reach an all-time high for the second consecutive year. Demand is forecast to decline modestly in 2000, but remain at historic high volumes.

The Western Wood Products Association, in its semi-annual forecast of lumber supply and demand, estimates U.S. lumber demand will total a record 53.3 billion bd. ft. in 1999, an increase of 2.2Vo from 1998.

Unexpected gains in housing construction and continued growth in the economy will contribute to the record lumber demand. WWPA expects housing starts to finish the year at 1.65 million, the best year for housing since 1986. Lumber use for repair and remodeling is also forecast to rise I.57o. Together, residential construction and repair/remodeling account for two-thirds of the lumber use in the country.

Looking to next year, WWPA forecasts lumber demand to slip 27o to 52.3 billion bd. ft. While lower, the demand in 2000 would be the second highest in history.

Housing starts are expected to fall 5.3Vo to 1.56 million, as WWPA anticipates higher interest rates and slower economic growth in 2000.

Western lumber production should improve to nearly 17 billion bd. ft. in 1999, up 37o from the previous year. Next year, output at westem sawmills should fall a modest 1.87o to 16.66 billion bd. ft.

Lumber imports are expected to top a record 18.96 billion bd. ft. in 1999. with most of the volume from

Canada. In 2000, WWPA estimates a l.l7o decline in lumber imports. U.S. lumber exports should recover in 1999 to 1.35 billion ft., following a sharp drop in 1998 caused by economic problems in Japan and Asia. In line with an expected economic recovery around the world, exports in 2000 should rise 4.3Vo.