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.”
Suz-Anne Kinney
Forest2Market: July 14, 2023
