October - December, 2008
News From Missouri
I have been traveling around the state some this past quarter to visit with the forest products industry. I have been to several sawmills and log buying yards. I keep hearing from sawmills and log buying businesses that is getting tough to sell lumber and logs. I also know of several sawmills that have gone out of business and others that do not know how much longer they can stay in business. price.
Rough green flooring and grade lumber is getting hard to sell. Most of the mills told me that they are on lumber quotas. When a sawmill does sell a load of grade or flooring lumber the price of the lumber brings less.
Pallet lumber is still moving. I have been told by a couple of pallet producers that their business is off by about 25 percent.
Walnut lumber and logs has really been in demand this past year. After visiting with one buying yard, I learned that they currently were not selling any logs anywhere. This buying yard said the demand has basically dropped off to nothing. Some other walnut log purchasers said that they are still selling veneer but the logs have to be really good to sell them.
Stave logs area a bright spot in the forest products industry. I hear white oak logs that will make staves for barrels are still selling for a good price.
Railroad cross ties are in high demand. I understand that some tie purchasing companies have even raised their prices some.
The questions that I get asked most often are “when is the forest products market going to return? What caused the market to decline?” There is no good answer to when the market will return. I have heard predictions that range from the second quarter of 2009 to the summer of 2011. The biggest reason for the market downturn is the housing bubble broke in the US. There are more houses on the market than buyers.
If you have any questions concerning the forest products industry you can give me a call. John Tuttle (573)522-4115 ext 3304.