Jan.-March, 2008
Timber Mart-South
Reports Sawtimber
Markets Weak,
Pulpwood Strong
Timber Mart-South’s Southeastern average sawtimber and pulpwood prices moved in different directions in 2007. Pine sawtimber prices declined in response to lower lumber production and ample timber supply. Pulpwood prices rose in response to strong international paper markets and substitution effects due to the lumber slowdown. Pine sawtimber prices fell 3.1% to US$37.05 per ton, and pine chip-n-saw prices fell 11.1% to US$19.67 per ton. Twelve-year low residential housing starts exerted downward pressure on pine sawtimber prices due to lower softwood lumber volume, with production down about 11 percent in the South. Softwood lumber prices were at record lows for most of 2007. Consistently good logging conditions from the recent drought across the eastern half of the South resulted in ample timber supply further depressing prices.
In contrast, pine and hardwood pulpwood prices rose in 2007 due, in part, to stable domestic and strong international pulp and paper markets. US pulp exports grew 21% this year to a ten-year high. The U.S. also increased exports of pulpwood logs and wood chips. Lower lumber production also buoyed pulpwood prices by reducing the amount of low-cost sawmill byproducts available for pulp production.
Source: Timber Mart-South