Forest2Market Monthly News

June Poll

Lumber prices continue to drop. What factors are most affecting the price decrease?

Supply Side
Demand Side
Tariff/Trade Disputes
Results From May's Poll

New housing starts have not lived up to expectations so far this year. Will they rebound in 2H2019?

Southern Timber Prices Skyrocket in 1Q2019

By John Greene
Southern timber prices surged during 1Q2019, as all products demonstrated significant increases across the board. Overall, pulpwood products increased at a higher rate than did pine log products, but the general trend of timber prices was on a considerable upward trajectory in the first quarter as prices increased +18.5 percent.

Southern Yellow Pine Lumber Prices Plunge in May

By John Greene
After temporarily spiking to over $400/MBF in late April, southern yellow pine (SYP) lumber prices plunged in late May to their lowest level in nearly five months. The slump is not unique to the South, however, as producers in the Pacific Northwest have also been wondering what happened to the spring rally. Construction markets remain quiet even after a modest improvement in housing starts last month.

Regional Changes Impacting the Sawmill Sector: Follow the Money… and the Wood

By Joe Clark
As we noted in the last installment on this topic, the southern pine lumber and pulp markets are fully recovered from the lows associated with the Great Recession of 2008, and investment capital is actively flowing into the forest industry in the US South. However, the situation is quite different in the US Pacific Northwest (PNW), where the market is hamstrung due to the tight log supply and high costs. How has this change in the supply/demand dynamic affected the number of active mills, as well as the flow of logs and residual material in these two regions? More importantly, how is this situation affecting capital investment in the regional forest industries?

North American Softwood Lumber Prices Bounce in Early May

By Keta Kosman
The latest data from May 6 show US construction employment is up significantly. Likewise, the latest update from regional producers is that recent log cost increases in the Pacific Northwest (PNW) require similar increases in manufactured lumber prices.

New Report Details the Economic Impact of US Forest Products Industry

By Forest2Market
Forest2Market recently completed an economic impact study for the National Alliance of Forest Owners (NAFO), which quantifies the contribution that forestry-related industries make to state, regional and national economies, and analyzes the most forested regions of the United States based on the most recent year of data available (2016).

How the Forest Industry Utilizes Harvested Trees

By John Greene
As we noted in the comprehensive study recently completed for the National Alliance of Forest Owners (NAFO), the economic impact of private, working forests on the US economy is tremendous. The total direct, indirect and induced employment effect associated with private timberlands is around 2.5 million jobs, $109.4 billion in annual payroll and $288 billion in sales and manufacturing. Consequently, the harvest and subsequent regeneration of trees is of the utmost importance for the US forest industry, and the most effective way to ensure this growth/harvest cycle is sustainable over time is to keep forested lands forested.

US Forest Industry Performance: April 2019

By Joe Clark
After annual revisions to historical data, total industrial production (IP) was shown to have inched down 0.1 percent in March following a fractional increase (+0.1 percent) in February; 1Q total IP slipped by an annualized 0.3 percent. Manufacturing output was unchanged in March after declining in both January and February; losses by wood products and motor vehicles were offset by gains in primary metals, computer and electronic products, and nondurable goods.

Precipitation Trends & Wildfire Outlook for the Pacific Northwest

By Joel Swanton
An abnormal heat wave hit the coastal Pacific Northwest (PNW) region in early May, prompting local officials to address the 2019 wildfire season a bit early. “Fire season is here. These hot temperatures can rob our forests of moisture, setting the stage for more wildfires,” said Washington Commissioner of Public Lands Hilary Franz.

US Housing Starts Spring to Life in April

By John Greene
Providing a much-needed spark to the sputtering housing market, US housing starts jumped significantly in April as gains were reported in both single- and multi-family housing units. Additionally, housing starts data for March was revised up to a pace of 1.168 million units as opposed to the slight 0.3 percent decrease as previously reported.

Mid-Year Housing Market Update

By Forest2Market
Residential construction resembles a boat riding the back side of a wave—with the bow (permits and starts) falling and the stern (new sales) rising. Residential construction spending in March (-1.8% MoM; -6.7% YoY) and resales were also standing on the prow.

Despite Turbulent Start to the Year, Brazil’s Forestry Sector Remains Optimistic

By Marcelo Schmid
The recent change in Brazil’s governmental leadership brought a general sense of optimism regarding a number of economic policies, leading many Brazilians to believe that rapid economic development would take place.