Suz-Anne Kinney
The MarketWatch Blog is Transitioning to ResourceWise Forest Products
Forest2Market: July 14, 2023
Wood Products manufacturing rose 0.1 percent between August and September, but remained 20.3 percent below its year-earlier level. Paper fell 0.4 percent, and was 7.8 percent below its September 2008 level.
The capacity utilization rate among Wood Products manufacturers rose from 49.3 to 49.6 percent, while Paper retreated to 74.2 percent (from 74.4 percent). Wood Products and Paper were, respectively, 17.6 and 6.1 percent below their year-earlier levels.
Western Wood Products Association (WWPA) reports U.S. lumber production was off over 25 percent year-over-year through August, with lumber production from the U.S. South off slightly less than 25 percent. While nationwide data were not yet available, western lumber production between August and September fell by nearly 10 percent according to WWPA, and production as a percentage of practical capacity fell from 54 percent in August to 49 percent in September.
Wood Products shipments rose 1.2 percent (4.5 percent lower, year-over-year basis) while Paper Products declined 0.3 percent (13.8 percent below the September 2008 level).
The value of inventories shrank in September. Wood Products declined 1.4 percent, while Paper Products was nearly flat (-0.1 percent). Inventories of both forest products manufacturing sectors were 11.2 percent below September 2008’s levels.
Performance Overview of Wood and Paper Products
Source: Institute for Supply Management, September 2009
Exports of wood pulp, paper and paperboard rose by 8.0 percent between July and August, while imports decreased 3.5 percent. Exports were 0.9 percent above year-earlier levels; imports were off a whopping 27.5 percent. Lumber exports jumped by 11.1 percent on a volumetric basis between July and August, while imports increased by 8.8 percent. Exports in August were nearly on par with August 2008 levels; imports were off 20.5 percent.
Read more about the Forest2Market Economic Outlook.
