U.S. Lumber Demand May Rebound

While the weakening economy should cause Western sawmills to see lower activity in the first half of the year, the Western Wood Products Association says lumber demand could improve somewhat during the second half of 2001.

The group forecasts U.S. lumber demand to be 51.7 billion bd. ft. in 2001, a 3.97o dip from the previous year and the lowest level since 1997. Despite this, 2001 would be the fourth-highest lumber consumption year on record.

The decline is due to a decrease in housing construction, the association says, citing figures that suggest new home starts would drop over 5Vo to 1.5 million units this year. This indicates an expected 5.7Vo decline in residential lumber construction use, to 19.8 billion bd. ft.

Lower housing activity should reduce Western lumber production by 6.37o to 16 billion bd. ft., with overall U.S. production decreasing 4.87o to 34.1 billion bd. ft.

The slower demand should bring an end to the three-year run of increased Canadian lumber imports, which the WWPA forecasts to decline to l8 billion bd. ft., the lowest total in four