menu-bgimg

What we can offer you

We provide detailed transactional data, cost benchmarks and in-depth analytics for participants in the wood raw materials supply chain.
  • Pricing Data
  • Benchmarks
  • Product Forecasting
  • Advisory Services
  • Analytics
Learn More

SilvaStat360 Platform

  • Price Benchmarks
  • The Beck Group’s Sawmill TQ
  • Timber Supply Analysis 
  • Global Economic Data

Explore Forest2Market's Interactive Business Intelligence Platform

Learn More

Industries

From biomass suppliers in the Baltics to pulp producers in Brazil and TIMOs in the United States, Forest2Market provides products and services for suppliers, producers and other stakeholders in the global forest products industry.

Learn More
x
 
Blog

Southern Timber Prices Continued Upward Trend in 4Q2021

January 18, 2022
Author: Joe Clark

Continuing the strong demand trend from 3Q2021, the weighted average price for southern timber once again surged to a new 14-year high in 4Q. Stumpage prices were up +5 percent quarter-over-quarter (QoQ) and +21 percent year-over-year (YoY). The last time Forest2Market’s Southwide weighted average stumpage price was this high was in 4Q2007, just before the onset of the Great Recession.

Stumpage_Prices_Jan_2021_1

Pulpwood

In 4Q2021, Southwide pine pulpwood prices declined -7 percent QoQ despite two of the three regions experiencing price increases for this product. Prices in the East-South inched down -2 percent, but prices in the Mid-South rose +10 percent while prices in the West-South jumped +17 percent.

However, hardwood pulpwood was the real standout product in 4Q, and demand was strong in all three regions as Southwide prices were up +38 percent QoQ. Prices in the East-South were up +5 percent, +74 percent in the Mid-South, and +19 percent in the West-South QoQ.

Stumpage_Prices_Jan_2021_2

 
Sawtimber & Chip-n-Saw

On a Southwide basis, pine chip-n-saw (CNS) prices dropped -15 percent QoQ as prices for this product decreased in every region. Prices in the East-South were down -10 percent, prices in the Mid-South dropped -11 percent, and prices in the West-South ticked down -1 percent QoQ.

Conversely, Southwide pine sawtimber prices jumped +14 percent QoQ as prices for this product increased in every region. Prices in the East-South were up +5 percent, prices in the Mid-South surged +22 percent, and prices in the West-South jumped +7 percent QoQ.

After experiencing an uptick in 2Q and 3Q2021, Southwide hardwood sawtimber prices reversed course in 4Q and dropped -5 percent. Prices in the East-South were down -21 percent and prices in the West-South dropped -39 percent. However, prices in the Mid-South surged +26 percent QoQ.

 

Stumpage_Prices_Jan_2021_3

 

Outlook

Total precipitation across the South was well below normal in 4Q2021, which provided some relief for harvesting operations in certain areas that were washed out by constant rainfall in 3Q. Even though we’ve just kicked off 1Q2022, precipitation levels have already increased markedly in recent weeks—especially in South Carolina, Georgia and Alabama. If the trend continues, it could limit harvesting activity and timber availability for the remainder of 1Q, which would apply upward pressure on stumpage prices.

Finished lumber prices surged in 4Q2021 due in part to pinched trade flows from Canada. Per Forest2Market’s southern yellow pine (SYP) lumber price composite, prices jumped to $1,008/MBF in 4Q, which is significantly higher than the historical floor price of roughly $350/MBF. Demand for pine sawtimber remains strong, however, as southern mills continue to run at a rapid pace to fill orders and take advantage of the high prices.

While the regional timber market has been oversupplied for a decade, stumpage prices across the South continue to inch higher on a QoQ basis. Southern timber prices are likely to remain volatile in the coming months. If you are not a subscriber to our Stumpage 360 database, now is the time to stay ahead of your local market with the power of transactional data.

timber price

Back to Blog

You May Also be Interested In

November 28, 2022
Southern Timber Prices Continue to Trend Lower in 3Q2022
Following a 15-year peak in 1Q2022 and a sharp decline in prices in 2Q2022, the weighted average price for southern...
Continue Reading
October 13, 2022
Halt in Russian Exports, Reduced Demand in China Contributed to a 20% Decline in Global Softwood Log Trade
Global trade of softwood logs plunged by 20% during the first half of 2022 year-over-year (YoY). Much of the decline...
Continue Reading
September 27, 2022
Hurricane Ian Threatens Stressed Timber Supply Basin
Hurricane Ian is slated to build significant momentum in the coming days as it crosses the western side of Cuba and...
Continue Reading