Wood in the rough market in Canada

Earlier Report Observations

The Canadian wood in the rough market volume contracted from 103.2 million tonnes in 2018 to 89.0 million tonnes in 2019. This decline was driven by structural reductions in production caused by insect infestations and wildfires, coupled with anticipated slowdowns in construction activity which softened demand for raw wood.

Market volume stabilized near 92 million tonnes from 2020 through 2022. While the COVID-19 pandemic initially disrupted exports, low interest rates and restricted mobility boosted residential construction, supporting domestic demand. Subsequently, record lumber prices in 2021 and 2022, fueled by strong housing demand in North America and severe supply constraints from major floods and wildfires in British Columbia, maintained pressure on the raw timber supply chain.

A sharp drop to 74.5 million tonnes occurred in 2023. The forest industry operated at a loss as lumber prices collapsed below $500 per thousand board feet, reducing the incentive for harvesting. Simultaneously, environmental protections for caribou habitats imposed new limitations on forestry operations, further curtailing production.

Production wood in the rough in Canada

In kind, 2017-2020, M t

Globally, Canada ranked as the 5th largest producer of wood in the rough from 2017 to 2020.

Top producers of wood in the rough, 2017-2020

World map of production of wood in the rough, 2017-2020

In 2020, Canada produced 92.7 million tonnes of wood in the rough, showing a modest year-over-year increase of 0.7%. Over the period from 2017 to 2020, production declined by 9%, which translates to an annualized rate of 3.1%. The lowest production level was recorded in 2019 at 92.1 million tonnes, while the highest was in 2018 at 101.9 million tonnes. The most significant drop occurred in 2019, with a decrease of 9.6%.

Annual dynamics of production in Canada in kind, 2017-2020, M t

Exports wood in the rough from Canada

Exports in kind, K t

The market displayed volatility during the observed period. The lowest export volume was in 2017, while the highest was in 2019, with a peak-to-trough ratio of 34 times. In 2020, Canada's exports of wood in the rough totaled 2,820 thousand tonnes, marking a sharp decline of 46.7% compared to 2019. The maximum export volume was recorded in 2019 at 5,288 thousand tonnes, and the largest increase occurred in 2018, with a rise of 595.6%.

Annual dynamics of product's exports from Canada in kind, 2017-2020, K t

From 2017 to 2020, China, Japan, and the United States remained the primary buyers of wood in the rough from Canada, accounting for 50.8%, 20.4%, and 19.7% of exports in kind, respectively. Together, these three countries represented 90.9% of total exports in kind.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Canada in kind, 2017-2020

Exports in value, M $ US

The market showed an unstable trend throughout the timeframe. Exports reached their lowest point in 2017 and peaked in 2018, with a 22-fold difference between these years. In 2020, the value of wood in the rough exports from Canada stood at 347.7 million US dollars, reflecting an abrupt decline of 43.1% compared to 2019. The maximum value was recorded in 2018 at 683.6 million US dollars, and the largest increase also occurred in 2018, with a surge of 2,068.0%.

Annual dynamics of product's exports from Canada in value, 2017-2020, M $ US

Between 2017 and 2020, China, the United States, and Japan were the main markets for Canada's wood in the rough exports in value terms, with shares of 47.2%, 23.0%, and 21.2%, respectively. Collectively, these three countries accounted for 91.3% of total export flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Canada in value, 2017-2020

Imports wood in the rough to Canada

Imports in kind, K t

The market exhibited an unstable trend throughout the timeframe. Import volumes fell to their lowest point in 2017 and peaked in 2018, with a top-to-bottom ratio of 6.2 times. In 2020, Canada imported 1,882 thousand tonnes of wood in the rough, representing a strong contraction of 15.7% compared to the previous year. The maximum import volume was recorded in 2018 at 2,329 thousand tonnes, and the largest increase occurred in 2018, with a rise of 520.2%.

Annual dynamics of product's imports to Canada in kind, 2017-2020, K t

From 2017 to 2020, the partner base for imports in kind was extremely narrow, with the United States alone responsible for 100.0% of total flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Canada in kind, 2017-2020

Imports in value, M $ US

The market displayed an unstable trend throughout the timeframe. Imports reached their lowest level in 2017 and peaked in 2018, with a 2.7-fold difference between these years. In 2020, the value of imported wood in the rough in Canada totaled 256.8 million US dollars, down by 14.0% compared to 2019. The maximum value was recorded in 2018 at 317.2 million US dollars, and the largest increase also occurred in 2018, with a rise of 174.1%.

Annual dynamics of product's imports to Canada in value, 2017-2020, M $ US

Over the period from 2017 to 2020, imports in value terms of wood in the rough to Canada were almost entirely tied to the United States, which accounted for 99.9% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Canada in value, 2017-2020