2Q2014 Pulpwood and Wood Fuel Prices in the US South

As they did from 2Q2012 to 2Q2013, year over year delivered prices for pine pulpwood, hardwood pulpwood, and wood fuel in the US South increased  between 2Q2013 and  2Q2014. Prices for pine pulpwood and hardwood pulpwood, however, decreased from 1Q2014 to  2Q2014, while quarter over quarter prices for woodfuel increased.

Pine Pulpwood*

Year-over-Year

Though they fell slightly in 2Q2014, pine pulpwood prices are up $1.24 per ton or 3.5 percent from a 2Q2013 average price of $35.03/ton to $36.27/ton. Between 2Q2013 and 2Q2014, demand for pine pulpwood increased by 2.9 percent. Stumpage prices have risen in response to demand, gaining $1.00/ton. Freight costs rose 1.9 percent or $0.18/ton, while handling costs (cost of harvesting the timber) remained steady, gaining just $0.06/ton.

Quarter-over-Quarter

In 2Q2014, pine pulpwood prices decreased $0.45/ton or 1.2 percent from the 1Q2014 average price of $36.73 per ton. Demand for pine pulpwood declined slightly as total purchase by volume was down 1.1 percent in 2Q2014. Freight costs increased an average $0.15/ton. Stumpage and handling costs, on the other hand, were lower, down $0.38/ton and $0.23/ton, respectively. 

Hardwood Pulpwood* 

Year-over-Year

The current US South hardwood pulpwood average delivered price is $43.01 per ton. Year over year, prices have increased $3.48/ton or 8.8 percent from a 2Q2013 average price of $39.53/ton. Although hardwood pulpwood demand decreased 1.2 percent during this period, stumpage prices gained ground. At $2.81/ton, stumpage prices are 24.9 percent higher than they were one year ago. Freight costs also increased an average $0.05/ton or 4.4 percent, and handling increased an average $0.16 per ton or 1.0 percent.

Quarter-over-Quarter

During 2Q2014, hardwood pulpwood prices declined $0.19 per ton or 0.4 percent from the 1Q2014 average price of $43.20/ton. Stumpage costs rose $0.36/ton, freight rose $0.03 per ton, and handling cost fell $0.59 per ton.

Wood Fuel 

Year-over-Year

Wood fuel prices gained $1.59/ton or 8.0 percent from the 2Q2013 average price of $19.94/ton to $21.53/ton in 2Q2014. Increased demand influenced the escalation in wood fuel delivered price. A 12.9 percent increase in demand was driven by biomass power facilities and pulp and paper mills with biomass boilers increasing production. This increase in demand exerted upward price pressure on wood raw material costs that rose $1.42/ton or 12.4 percent. Freight costs increased an average $0.17/ton or 2.0 percent.

Quarter-over-Quarter

Quarter over quarter, wood fuel prices increased by $0.46/ton to an average of $21.53/ton. Freight costs that increased an average $0.41/ton caused the delivered price increase as demand declined and wood raw material costs remained steady, increasing $0.05 per ton. Purchases by volume were 1.7 percent lower in 2Q2014.

*Delivered costs are expressed in chip equivalent $/ton.