Forest2Market Monthly News

March Poll

Lumber prices have surged in recent weeks. Will prices follow the same trend as 2018?

Prices will be higher than 2018
Prices will be about the same as 2018
Prices will be lower than 2018
Results From February's Poll

What is the current state of the wood residuals market in your area?
Southern Yellow Pine Lumber Prices Skyrocket; Will History Repeat?

By John Greene
Southern yellow pine (SYP) lumber prices surged once again in week 8 as they eclipsed year-over-year (YoY) weekly prices for the first time in 2019. Forest2Market’s composite southern yellow pine lumber price for the week ending February 22 (week 8) was $456/MBF, a 5.3% increase from the previous week’s price of $433/MBF and a 0.44% increase from the same week in 2018. $402/MBF.

Pacific Northwest Log Markets: Domestic and Export Prices Diverge

By Joel Swanton
Beginning in 4Q2017, prices for domestic and export Douglas fir logs in the Pacific Northwest (PNW) rose steadily before they spiked in 2Q2018 to record levels. As I wrote in 4Q2018, log and lumber prices in the PNW began to drop precipitously by September of last year as lumber market speculation subsequently waned. We’re now halfway through 1Q2019 and the trend shows no signs of slowing, but how low can prices go?

Southern Timber Prices: 4Q2018 Performance & Outlook

By Gabe Rogers
Timber prices in the US South during 4Q2018 were mixed. Pine pulpwood products decreased significantly while hardwood pulpwood products increased at nearly the same rate. Prices for pine log products increased, and the overall general trend of timber prices was up (+0.9 percent) in 4Q2018.

Harvests Approach Maximum Sustainable Levels as Roundwood Prices Surge in Sweden

By Jarno Seppälä
Swedish forest industry performance was largely positive in 2018 due to strong export opportunities. Roughly 70% of the forest industry’s production is export driven, which means that successfully penetrating foreign markets is crucial for the competitiveness of the entire Swedish industry.

Analysis of a Natural Disaster: Hurricane Michael’s Lasting Impacts on Florida's Timber Inventory

By Jay Engle
According to data from the National Oceanic and Atmospheric Administration (NOAA), over 3.5 million acres of timberland were directly affected from Hurricane Michael. About half of these acres were impacted severely or catastrophically, meaning there was a 75% (severe damage) to 95% (catastrophic damage) total timber loss in these areas. The remaining acres were damaged moderately, sustaining a roughly 15% total damage.

Forest2Market Launches New Interactive Stumpage Price Tool

By Forest2Market
As we continue to add new features and functionality to the platform that are uniquely beneficial for participants in the forest products industry, we have rolled out the 2 nd generation interface of our popular stumpage product for the US South. This product launch follows other web-based products that we’ve introduced over the last several months, including the Economic Analysis tool, the Precipitation tool and the Timber Supply Analysis 360 forest inventory interface.

Southern Sawmills Must Prepare for Change in Log Costs

By Joe Clark
For the average southern SYP sawmill, log cost can make up 75 percent of the total cost of the mills’ finished product; it is therefore the single most important cost component in the supply chain. Sawmill procurement teams are tasked with finding the perfectly sized log, maximizing the mill’s market share of that log (while not overpaying), and reducing the variability in log size and quality as much as possible to maintain profitability.

How Are Lumber Manufacturing Costs Changing the Industry?

By Roy Anderson
The Beck Group estimates that more than $2.5 billion of capital investment is flowing into southern yellow pine (SYP) sawmills. While much of this capital is going toward new, greenfield sawmill operations, some is going toward significant upgrades at existing mills. One operating method that investors seek to maximize in their targeted financial returns is through increasing economies of scale, which leads to lower per-unit manufacturing costs.

US Forest Industry Performance: January 2019

By Joe Clark
Total industrial production (IP) increased by 0.3 percent in December after rising 0.4 percent in November (originally +0.6 percent). For 4Q as a whole, total IP moved up at an annual rate of 3.8 percent. In December, manufacturing output increased 1.1 percent, its largest gain since February 2018.