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
  • Madison’s Lumber Reporter
  • 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

US South Timber Prices Continue to Drop in 2Q2017

August 02, 2017
Author: Gabe Rogers

Southwide timber prices during 2Q2017 continued to decrease from 1Q, with nearly all pulpwood and pine log products dropping more than -3 percent.

Pulpwood

On a Southwide basis, pine pulpwood prices dropped to $9.32/ton during 2Q2017 (-3.7 percent), and two out of three regions saw prices decrease for this product. The East-South experienced the largest drop to $10.87/ton, or -11.3 percent, and the Mid-South dropped to $8.05/ton, a decrease of -7.8 percent. The West-South was the only region to show an increase in price at +1.5 percent to $7.79/ton.

Hardwood pulpwood prices took an even more significant drop, tumbling -15.6 percent during 2Q to $5.97/ton. The Mid-South region plunged -20.3 percent to $5.96/ton; the West-South plummeted -25.7 percent to $7.55/ton; and the East-South slipped by -3.9 percent to $4.73/ton.

Stumpage_Aug2017_1.png

 

Pine Logs

Pine chip-n-saw prices decreased to $17.16/ton, a decrease of -5.1 percent Southwide. Both the Mid-South and West-South regions saw the largest drops, as prices fell -10.4 percent to $16.35/ton and -11.1 percent to $13.61/ton, respectively. The East-South region rose to $19.60/ton, a +0.5 percent increase.

Pine sawtimber followed suit, declining -3.7 percent to a Southwide average of $25.35/ton. All regions showed minor declines in price. Mid-South pine sawtimber prices slid -4.1 percent, down to $23.74/ton and West-South prices dipped -3.1 percent to $27.80/ton. Prices in the East-South dropped -2.8 percent to $24.42/ton.

 

Stumpage_Aug2017_2.png

Outlook

US GDP has been increasing the past few quarters and is forecasted to rise in the near term. The Atlanta Federal Reserve recently projected that the US economy grew 3.0 percent in 2Q2017 and continued growth at this pace could create an increase in demand for pulp and sawtimber in the coming months. The looming US tariffs on lumber imports from Canada—with a final decision expected by late summer—may also spur demand for sawtimber logs in the US South.

However, even if demand for pine sawtimber increases through the next few months, there continues to be an oversupply of large logs available on the market. Southwide stumpage prices could remain muted through the remainder of the building season and into 2H2017.

Get fair market value for your timber

Back to Blog

You May Also be Interested In

November 18, 2019
Pine Pulpwood: Driving the Southern Timber Price Rebound
We are more than a decade removed from the depths of the Great Recession and despite 10 years of solid growth,...
Continue Reading
November 14, 2019
Surplus of Beetle-Damaged Timber Impacting European Forest Industry
Over the last several decades, a combination of devastating wildfires and pest infestations have destroyed millions...
Continue Reading
November 13, 2019
Southern Timber Prices Continued to Slide in 3Q2019
After skyrocketing in 1Q2019 due to prolonged wet-weather challenges, southern timber prices reversed course sharply...
Continue Reading