I guess you have to compare the impact of cutting down some trees (and replacing them, I assume? Maybe even replacing them with more trees in a wider area), drying them and cutting them with the impact of mining, smelting and producing Steel for more traditional ships. I assume mining also involves removing trees and wildlife to clear the area.
These things aren't always as obvious as "cutting down trees is bad", if it's better than the alternatives and we can offset the impact then its an improvement right?