Wood Fiber Supply Chronicles, Part 1: Divestment, Depression and Demand Create Bio-mess

Posted by Pete Stewart

In this series, I will discuss the difficult circumstances that consumers of wood fiber are facing. In this first post of the series, the focus will be on the events that have created restricted wood supply and that will likely plague the industry for years to come:

  • The unintended consequences of timberland divestments
  • Bad luck in the timing and intensity of the housing bust
  • Inattention to—and an inability to react to—global policy changes
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Topics: wood fiber supply

2014 Southern Pine Composite Lumber Prices

Posted by Suz-Anne Kinney

Last week's weekly Market2Mill report marked the end of the fifth full year that Forest2Market has been reporting southern yellow pine lumber prices. The 52-week graph of composite southern yellow pine lumber prices from 2010 through 2014 shows:

  • 2012 launched the post-recession rebound.
  • From late 2012 through 2014, prices remained relatively stable.
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Topics: southern pine lumber

10 Predictions for Wood Consuming Industries in 2015

Posted by Pete Stewart

We'll be taking a break over the holidays. But not before we close the year with a list of 10 predictions for wood consuming industries in 2015, from Forest2Market's President and CEO, Pete Stewart.

1. The sleeping giant will awake to biomass demand.

For years, the pulp and paper industry's attitude toward bioenergy demand has shifted between head-in-the-sand and wait-and-see. In 2015, this sleeping giant will awaken as pockets of the US South experience significant price appreciation, the result of increased competition. (Download our free white paper, Future Implications: Timber Inventory and Price Trends for details.)

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Topics: forest industry performance

Forest Industry Performance November 2014

Posted by Suz-Anne Kinney

Forest industry performance in October and November was reported by both the US government and the Institute for Supply Management.

Industrial Production

Total industrial production (IP) took a breather in October, edging down 0.1% after an 0.8% advance in September. Total IP in October was 4.0% above its level of a year earlier. In addition:

  • Manufacturing output increased 0.2% for a second month. Motor vehicle and parts production, by contrast, dropped for a third month—the worst consecutive run since January 2009.
  • Wood Products output rose by 0.8%, reversing September’s -0.6%. Paper fell 0.2% after being unchanged in September.
  • Construction gained 0.2%, extending September’s +0.5%.
  • Consumer goods dropped by 0.2%, partially offsetting September’s +0.4%.
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Topics: forest industry performance

Timber Supply and Demand Trends Confirmed by New FIA Data

Posted by Daniel Stuber

Since 2006, when market prices for pine sawtimber started to soften, the amount of timber harvested has decreased. Timberland owners adjusted their harvest schedules longer rotations with more second thinning regimes. This change has led to an accumulation of sawtimber in forests in the US South, and this in turn has led to the number of acres being regenerated dropping precipitously.

New data from the U.S. Forest Service’s Forest Inventory and Analysis group confirms these timber supply and demand trends. Based on the 2013 measurement cycle, the inventory of sawtimber has increased 3.2 percent annually since 2007, or 21 percent. Pine pulpwood inventory has also increased, though by less than half as much as sawtimber; since 2007, inventory in the pine pulpwood category has increased by 9 percent or 1.4 percent annually. This new data suggests that much of what we have heard about forest resources being under significant stress should be questioned.

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Topics: timber supply and demand

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