The Wood and Fiber Supply Chain Experts
2Q Results—Pine Sawtimber Delivered to Sawmills in the South
From the August 2010 Forest2Mill newsletter.
Pine sawtimber inventories at mills dropped in the first quarter of
2010, despite heightened lumber demand. As a result of this imbalance, prices climbed through April
2010. Virtually all of 2Q2010’s price increase came in April, an increase of just over $1/ton to
$44/ton. Since then, mills have replenished their inventories and cut production, causing prices to
level off.
“Now that inventory is back to its second half 2009 level and high
demand for lumber has dissipated,” said Stuber, “mills have been cutting production. We expect to
see prices drop through the middle of September. Though we may see a little upward movement in
price due to seasonal buying in the fall, overall the trend looks like it will be downward.”
The purchased volume of pine sawtimber was nearly 10 percent higher
than first quarter’s volume.
Additional Stories from the August 2010 Forest2Mill Newsletter:
Economic Outlook
Housing Market Update
Results from 2Q2010 Delivered Price Benchmark
Hardwood Fiber
Pine Fiber
Myth of Deforestation
AF&PA Sustainability
Report