Forest2Market Monthly News
**Forest Industry Employment Opportunity**

Our friends at the Forest Resources Association (FRA), a national advocacy organization for the wood supply chain, do a lot to promote the forest products industry and public policies in the United States. The organization is currently searching for a Southcentral/Southeastern Region Manager to provide technical support and information to the industry, organize field visits, help develop regional policy, facilitate organization growth and manage the business and financial aspects of the regional office. See the full job description on the FRA website.

Results From July's Poll

Is the current trade/tariff situation impacting log prices in your area?

Southern Yellow Pine Lumber Prices Show Signs of Life in July

By John Greene
Following a dismal performance in June, which saw southern yellow pine lumber prices sink to their lowest point since March 2016, the market is now showing signs of life. Forest2Market’s composite SYP lumber price for the week ending June 19 (week 29) was $376/MBF, a 6.2% increase from the previous week’s price of $354/MBF, but a 26.7% decrease from the same week in 2018.

Southern Yellow Pine Log Exports: An Historical Analysis

By Daniel Stuber
In our mid-year assessment of conifer exports, we demonstrated that while southern yellow pine (SYP) log exports are on a recent slide, they are gaining market share over Western Hemlock exports from the Pacific Northwest (PNW). Since the trade tensions with China continue to be a fluid situation, we wanted to present a profile of SYP historical exports and recent developments using the US Census Bureau’s trade data.

CLT and Wood Construction Products Help Combat Anti-Forestry Narrative

By John Greene
Those of us close to the forest products supply chain have watched with great interest as the cross-laminated timber (CLT) and “mass timber” building products industry has exploded over the last decade. While policy drivers such as the Timber Innovation Act and the International Code Council’s change in building codes have assisted in making these products more mainstream, the free market has ultimately driven the remarkable growth of the industry, which is helping the “green” movement to reassess the benefits of wood as well.

New Log Export Tax Will Impact BC Forest Industry

By Keta Kosman
The government of British Columbia (BC) recently implemented Bill 22—a new tax on log exports from the coastal area of the province—which has caused quite a stir in the regional forest products industry. The Bill has had cascading effects, and forestry and sawmill operators in the Interior of BC are also concerned about what affect this change in policy might have on their operations.

Regional Wood Fiber Costs vs. Oil Prices: Is there a Correlation?

By Pete Coutu
In my first installment on the topic of oil price volatility and its impact on delivered wood costs, I showed the drastic changes in oil price—dramatic peaks and valleys when displayed in chart form—that began in 2005. However, upon closer inspection, the data actually show that while crude oil prices are significantly higher from roughly 2005 onward, price volatility and the percent change in price has been fairly constant since the mid-1980s.

Charting Precipitation Trends and Stumpage Prices Across the US South

By Mike Powell
At the mid-year point of 2019, the US South is coming off one of the wettest stretches the area has experienced in several years. While the southern forest industry continues to dry out and resumes normal operations in the eastern region, the weather pattern has shifted and has brought excessively wet weather to the western region. A majority of the rainfall over the last few months has pummeled the western region, particularly portions of Texas and Louisiana, while southeastern Georgia cannot seem to even get a passing shower.

Russian Sawmilling Sector: Factors Influencing Investment and Business Outlook

By Jarno Seppälä
The Russian sawmilling sector is characterized by fragmentation, a division between large export-oriented companies and smaller companies relying on the domestic market, labor intensity and advantages in stumpage and labor costs. However, the industry is facing serious pressure brought on by inflation and other factors driving up the prices of delivered logs, and the necessity to invest in new infrastructure and equipment to maintain competitiveness.

Pine Resin: The new ‘Green Gold’ in Brazil’s Planted Forests

By Marcelo Schmid
Planted forests in Brazil provide a number of products other than wood raw materials. Consider the Eucalyptus tree, for instance: from its leaves, it is possible to obtain essential oils and natural dyes; from its flower, Eucalyptus honey; and its branches and bark provide biomass for power generation. Pine forests, particularly the Elliotti and tropical species, produce a valuable resin that is used by the chemical and food industries in the manufacture of disinfectants, detergents, paints, adhesives, aromatics and flavorings.

Brazil’s National Plan of Planted Forests: How Will it Impact the Forest Industry?

By Marcelo Schmid
June began with a positive development for the Brazilian forest sector: the approval of the National Plan of Planted Forests (PNDF) by the Ministry of Agriculture, Livestock and Supply. The PNDF aims to increase the area of planted forests to two million hectares (4.9 million acres) by 2030 and provide legal certainty for investors in the sector.

US Forest Industry Performance: June 2019

By Joe Clark
Total industrial production (IP) rose 0.4 percent in May after falling 0.4 percent in April (originally -0.5 percent); however, the rates of change for the five previous months were again revised down on net. The indexes for manufacturing and mining gained 0.2 percent and 0.1 percent, respectively, in May; the index for utilities climbed 2.1 percent. Wood Products was one of five manufacturing industries with gains exceeding 1 percent.

Housing Starts Drop Again in June

By John Greene
Even with an increasing population of millennials, low interest rates and the lowest unemployment rate in decades, builders are having a difficult time filling new residential houses and securing the land and labor to keep building. The numbers from June seem to prove it.