Timber Mart-South Reports Sawtimber Markets Weak, Pulpwood Strong
ATHENS, Ga., March 5 /PRNewswire/ -- Timber Mart-South's Southeastern average sawtimber and pulpwood prices moved in different directions in 2007. Pine sawtimber prices declined in response to lower lumber production and ample timber supply. Pulpwood prices rose in response to strong international paper markets and substitution effects due to the lumber slowdown. Pine sawtimber prices fell 3.1% to US$37.05 per ton, and pine chip-n-saw prices fell 11.1% to US$19.67 per ton. Twelve-year low residential housing starts exerted downward pressure on pine sawtimber prices due to lower softwood lumber volume, with production down about 11 percent in the South. Softwood lumber prices were at record lows for most of 2007. Consistently good logging conditions from the recent drought across the eastern half of the South resulted in ample timber supply further depressing prices.
One year change in South-wide average stumpage prices US$ per ton 2007 2006 % Change Pine Sawtimber $37.05 $38.25 - 3.1% Pine Chip-n-saw $19.67 $22.13 -11.1% Pine Pulpwood $ 7.86 $ 6.56 19.8% Hardwood Sawtimber $21.90 $20.88 4.9% Hardwood Pulpwood $ 6.63 $ 5.84 13.5% In contrast, pine and hardwood pulpwood prices rose in 2007 due, in part, to stable domestic and strong international pulp and paper markets. US pulp exports grew 21% this year to a ten-year high. The U.S. also increased exports of pulpwood logs and wood chips. Lower lumber production also buoyed pulpwood prices by reducing the amount of low-cost sawmill byproducts available for pulp production. Timber Mart-South provides quarterly timber price and news reports which are used by companies, consultants, landowners, and analysts to assess market conditions in the Southern U.S. Reports include stumpage and delivered prices of five pine and three hardwood products. Historical data series and archived reports span 1976 to the present with archived news since 1995. For more information, visit our website at www.timbermart-south.com.
SOURCE Timber Mart-South