PORTLAND, Ore. -- A mild slowdown in new home construction and repair and
remodeling expenditures should reduce U.S. lumber demand next year, according to
Western Wood Products Association's 2004 lumber forecast.

  The Portland-based trade association said U.S. lumber consumption will
decline 1.8 percent to 55.7 billion board feet in 2004. Despite the pull back,
the volume used will be the third highest on record. Lumber demand in 2003 is
expected to hit an all-time high of 56.7 billion board feet.

 The two largest lumber use markets new home construction and repair and
remodeling will account for most of the decline in 2004.

 Higher interest rates are expected to slow home construction, reducing
housing starts slightly to 1.69 million units. The decline will reduce the
volume of lumber used in the segment by 3.6 percent to 22.4 billion board feet
next year. Repair and remodeling usage is anticipated to decline 3.3 percent to
17.7 billion board feet.
 
 The housing sector has been a bright spot of the U.S. economy the past
few years, fueling unprecedented demand for lumber products, said WWPA
President Michael O'Halloran. It's clear that wood remains the top choice for
building and remodeling homes for American families. While activity will be
slower in 2004, we foresee another year of strong demand for Western lumber
products.

  In step with lower consumption, U.S. lumber production is forecast to ease
by 1.4 percent to 35.7 billion board feet. Western production will be down
roughly 1.4 percent in 2004 while Southern production will be off 1.1 percent.

  Lumber imports to the U.S. are expected to decrease to nearly 21 billion
board feet in 2004, according to WWPA. While shipments from Canada will be down
1.7 percent to 19 billion board feet, non-Canadian imports are expected to rise
5 percent to 1.87 billion board feet, spurred by higher volumes from European
lumber mills.

  Western Wood Products Association represents lumber manufacturers in the
12 Western states and Alaska. Based in Portland, WWPA compiles lumber industry
statistics and provides business information services to mills. The Association
also delivers quality standards and technical support services to the industry.