Declining Lumber Prices Cause Canada’s Trade Surplus to Shrink in July

Statistics Canada (StatsCan) is reporting that in July, Canada’s merchandise imports rose 4.2% and exports increased 0.6%. As a result, Canada’s merchandise trade surplus narrowed from $2.6 billion in June to $778 million (CAD) in July. In real (or volume) terms, total imports rose 1.9% in July, while exports edged down 0.3%. Higher prices therefore had a significant impact on import and export values in July.

Exports prices increased sharply since the end of last year, up 16.7% in July compared with December 2020. After a sharp increase of 7.5% in June, total exports rose 0.6% in July to $53.7 billion, another record high. The increases observed in other product sections were almost entirely offset by the decrease in exports of forestry products and building and packaging materials (-12.7%). The decrease in exports of lumber and other sawmill products (-23.6%) drove the decline, the result of a fall in prices. Lower demand contributed in part to a decrease in lumber prices in July.

FEA compiles the Wood Markets News from various 3rd party sources to provide readers with the latest news impacting forest product markets. Opinions or views expressed in these articles do not necessarily represent those of FEA.
Original Source:
Canadian international merchandise trade, July 2021