The Wood and Fiber Supply Chain Experts
Log Prices in PNW Strengthen
From the October 2009 Forest2Mill newsletter.
Log prices in the Pacific Northwest strengthened in August, stemming
an 18-month slide. Diminished log supply and increased emphasis on export shipments led to the
increases.
Forest2Market Pacific Northwest
Delivered Price Benchmark data show that Douglas
fir log prices were up for August across the Westside. They were particularly dramatic in the South
Willamette Valley, where prices jumped about $30 per MBF. Length pricing data showed a strong
inclination to favor longer preferred lengths.
Inland Empire prices for Douglas fir and hem-fir have remained flat over the summer. Changes
there were minor.
Western Washington hemlock export markets were very competitive in August; prices were up
slightly and volume was strong. Export 2S hem-fir carried a $95 per MBF premium over domestic
sawmill logs. Westside Oregon and Washington hem-fir domestic 6-11” log prices showed a 10 percent
jump during August. Douglas fir 6-11,” on the other hand, had an unusually slim premium, only $20
per MBF over whitewood.
These changes in pricing reflect current supply constraints rather than improved markets for
lumber, according to
Gordon Culbertson, Forest2Market’s Pacific
Northwest Regional Manager. “Log prices are up nominally; however, they remain $100 per MBF below
the highs of 2008. With the winter construction doldrums and reduced demand on the horizon, the
price increases are likely to be short-lived. It will be at least spring 2010 before lasting
recovery will lead a genuine upward trend in prices.”