Two forces are pulling America’s timber industry in opposite directions. One is the nascent recovery in the U.S. housing market. The other is a drop in Chinese demand.
For the moment, the drop in Chinese demand is winning. But the moment may not last.
China has, until very recently, had an insatiable appetite for American wood. A booming construction industry needed to be fed, and the combination of export tariffs Russia slapped on in 2010 and a decline in U.S. timber prices following the housing bust made American logs and lumber a bargain.