April - June 2006
Regional Prices
The Hardwood Market Report notes that although considerable volumes of Hard Maple and other whitewood species are still being used in the northern US, efforts by mills to saw through log decks boosted green lumber supplies and prices are responding accordingly. Oak markets are a bit more stable due to this focus on whitewood production. Most sources describe log decks in the North Country as ample; however, many express concerns over the high prices of logs and timber.
The southern market is described as competitive for key species and grades, although most mills and yards are still balancing shipments with production. However, concerns regarding future demand for 4/4 #1C Red Oak abounds, particularly since on-hand raw material inventories are high at most oak strip flooring plants. Demand for FAS and 1F White Oak and Poplar is characterized as robust. Log decks are ample across the territory, though frequent rains have affected logging in specific locations.
Timber Mart South says that south-wide average stumpage prices were up modestly for the five major timber products in the 1st Quarter of 2006 compared to the last quarter of last year. Timber markets were strongest for large diameter pine logs and relatively stable for other products. Dry weather and good logging conditions were the rule across the region.
The average mixed hardwood sawtimber price eased up slightly for the quarter and has remained relatively unchanged for the past five quarters. Hardwood pulpwood markets strengthened, with the south-wide price increasing 4.9 percent over last quarter, although down 1.4 percent from the 1st Quarter of 2005.
Indicators of the general market, reported by Random Lengths, show the Random Lengths Framing Lumber Composite price ended the quarter at $358 per thousand board feet (mbf) for the week ending March 31st, down about 4 percent from the end of 2005 and nearly 15 percent below the same period one year ago. The Random Lengths Structural Panel Composite price ended the quarter at $369 per thousand square feet, 3/8" basis (msf), down about 6 percent from the end of 2005 and nearly 19 percent below the same period one year ago.
Sources: 1) Condensed from Hardwood Market Report, May 13, 2006, Nebraska Timber Talk. 2) Timber Mart South, 3) Random Lenths.