HOt LUn nber Market Might Gool Slighily

The red-hot lumber markets of previous.

,umber production in 20L4are lg.g 2004 will cool slightly this year and In2005, lumberdemandisforecast billion ba. rt., the highest volume into2006,accordingtoanewforecast at 59.6 billion bd. ft., down 3.5%, since lgg0. production at western by the Western Wood Products while 2006 demand should slip ro sawmills isforecasttoslipto l8.l bilAssociation. Despite the decreases, 58.9 billion bd. ft. Alrhough lower, lion bd. ft. in 2005 and lj.9 billion lumber demand should remain at his- the 2005 and 2006 demand- volumes bd. ft. in 2006. toric highs' would be the second and third highest Mills in the U.S. South should see

The Portland, Or.-based trade asso- in history. output decline as well, moving from ciation reported preliminary totals

All of the growth in lumber con- ts.i Uiltion bd. ft. in 2004to t7.: uitshow lumber demand in 2004 reached sumption came in residenrial con- lion bd. ft. in 2006, predicts WWPA. a record 61.8 billion bd. ft.,an struction and repair and remodeling. The U.S. impoited 3gvo of the increase of 8.47o above the previous Housing starts roared to 1.96 miltion lumber used in the country last year, high of 57 billion bd. ft. set the year units in 2004, pushing residential mostly from Canada

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lumber use to a record 26.J billion bd. Lumber imports in 2004 totaled ft.. Use of lumber in repair and remod- 23.5 billion bd. ft., with nearly 2l biIeling also reached all-time highs of lion bd. ft. originating from canada. 19.5 billion bd. ft., fueled by record other imports, mostly from Europe, numbers of existing home sales. Latin America and New Zealand. wwPA anticipates housing starts totaled a record 2.54 billion bd. ft. and remodeling activity will decline Lumber imports should decline over the next two years as interest with the markef in 2005 and 2006, but rates begin to move higher. Since could gain market share. By 2006, both markets together comprise nearly importls are predicted to comprise annual lumber consumption, 38.57a of the U.S. lumber suppfy, ot Be,evue, ii:, qlop in housing and remodeling 22.7 billion bd. ft. ABC year ancl next. ofl.ers quality standards and technical

Preliminary estimates of western support r"rui.", to the industry.