• News

Sawn softwood imports up 66.3% year-ended September

Imports of sawn softwood products lifted 63.3% year-ended September 2022, rising to 975,872 m3. Monthly imports totalled 66,451 m3 in September, their highest September total since 2018, which arose in the midst of the previous housing cycle. As volumes continued to be strong, weighted average prices were stable, at record levels.

As the aggregate chart shows, sawn softwood imports ramped up quickly and though still growing on an annualised basis, appear to be close to their peak at just below 1.0 million m3 for the year. Meantime, the weighted average price in September was just 0.03% below the all-time peak set the prior month, recording AUDFob847.94/m3.

A limited sense of the grades/products driving the growth can be observed below. There are really five import codes dominating the supply to the market:

• 4407.11.10.34
• 4407.11.10.39
• 4407.11.99.08
• 4407.11.99.15
• 4407.12.10.16

Of greatest note is that the 4407.12.10.16 code saw imports increase to a substantial 376,206 m3 year ending September 2022, an increase of 78.8% over the previous year.

As the chart below shows, this grade’s imports have climbed over the last two years, only plateauing over the last few months. The major suppliers were Germany and Sweden.

Relevantly, all the main import lines are structural grades – a mix of treated and untreated, dressed and roughsawn – and the vast majority is supplied from northern Europe. The exception is the treated grade 4407.11.10.34, dominated by shipments from New Zealand.

In terms of source countries major increases in supply were from northern Europe and in particular:

  • Estonia
  • Germany
  • Lithuania
  • Sweden

Canada also increased supply significantly during the period, but from a low base. Shipments from New Zealand continue at just over 100,000 m3 per annum and were modestly lower (-1.7%) over the year-ended September.

We can anticipate imports will taper over the coming year, as forward demand from new housing approvals and starts begins to decline.

Posted Date: December 12, 2022

Related Resources

New FWPA Data Dashboard
  • FWPA
  • News

A comprehensive tool for the forest and wood products industry We are e…

GDP remains in positive territory (just)
  • FWPA
  • News

The RBAs current interest rate settings aimed at constricting demand…

May’s annualised inflation rate a shocker
  • FWPA
  • News

Reported in May, Australia’s annual inflation rate shifted up a gear,…