The Wood and Fiber Supply Chain Experts
Overview of October Prices in the Pacific Northwest
From the Pacific Northwest Delivered Price Benchmark
From the December 2009 Forest2Mill newsletter.
Continuing the upward trend from last quarter, October prices
for Douglas fir logs destined for sawmill-plywood production in the Westside of Oregon and
Washington were up more than 5%. Increases have been the most pronounced in the Southern Willamette
Valley. Washington prices for small Douglas fir moved upward as well.
Export buyers continued to be very competitive, aggressively pursuing volume. Timber
Investment Management Organizations (TIMOs) and other log sellers have ratcheted back logging
operations, resulting in the lowest harvest levels in recent times. Log price increases are being
driven by limited log volumes and a desire to stimulate more production in anticipation of firming
product prices and improved future demand.
Inland Empire Douglas fir and hem-fir log prices remained relatively flat the past month.
There was little change in PNW wood chip prices for October. Pending pulp and paper mill
closures and the expiration of black liquor tax credits will likely put downward pressure on chips
in coming months. Pulpwood and whole log chips in western Oregon will be most subject to surpluses
as a result of slowed demand.
For more information on the Delivered Price Benchmark Service covering the Pacific
Northwest,
click here
or call Gordon Culbertson at (541) 302-8010.