1st Quarter 2001, Poor Pine Markets Continue, According to Timber Mart-South

Apr 30, 2001, 01:00 ET from Timber Mart-South

    ATHENS, Ga., April 30 /PRNewswire/ -- Pine sawtimber stumpage prices fell
 further this quarter.  Markets were poor with lumber prices, in some cases,
 "too low for mills to profitably buy sawtimber."  Pine pulpwood and chip-n-saw
 also remained low.
     Salvage operations following December's ice storms in Arkansas and Texas
 forests meant pine pulpwood and, to some extent, chip-n-saw markets were
 glutted.  Both states and part of Louisiana saw 10-year low prices for
 pulpwood with chip-n-saw and sawtimber well below 10-year averages.
     Reporters said Mississippi and Alabama markets almost shut down along the
 coastal plain blaming low lumber prices, pine bark beetle, and CRP thinning.
 Alabama average pine pulpwood hit a 10-year low with chip-n-saw below 10-year
 averages.  On the other hand, in Mississippi, pine sawtimber prices went
 higher, especially on better sites.
     Reports show a concern that the logging community is "at its breaking
 point" and will not survive the poor market conditions in Georgia and Florida.
 Pine bark beetle infestations plagued an already depressed pine pulpwood
 market and Georgia pine pulpwood stumpage prices hit a 10-year low.
     Pine markets were poor in North Carolina, as well, with pine bark beetles
 flooding the market with pine pulpwood and pine plylogs.  A reporter in South
 Carolina cited poor markets and tight quotas for all pine products.  The only
 firm markets in Tennessee were for hardwood sawtimber.  Virginia sawtimber
 markets were up for the quarter but lower than last year with pulpwood markets
 fair.
     Hardwood sawtimber stumpage prices varied widely over the region.  Heavy
 rainfall in the western states of the region drove up hardwood prices as
 bottomlands became too wet to log. Texas, especially, saw continued higher
 prices for mixed hardwood sawtimber and pulpwood. Mississippi oak sawtimber
 reached all time high prices.
     Drier weather in the eastern states lowered mixed hardwood sawtimber
 prices but the localized demand for hardwood pulpwood kept some markets
 moving.  North Carolina markets for yellow poplar were good, and fair for
 hardwood chips.  Oak, especially red oak, is still in demand.
 
     Southeastern Average Stumpage Prices
                            Prices $/ton          year ago
                        1Q-01   4Q-00   1Q-00   up/dn   prcnt
     Pine Sawtimber     $34.11  $36.21  $42.00  ($7.89) (19%)
     Pine Chip-n-saw    $22.53  $25.88  $28.71  ($6.18) (22%)
     Pine Pulpwood       $6.73   $7.22   $9.06  ($2.33) (26%)
     Hardwood Sawtimber $17.66  $18.55  $17.26   $0.40    2%
     Hardwood Pulpwood   $4.60   $4.03   $4.41   $0.19    4%
 
     For trends, see ten-year graphs of southeastern average quarterly prices
 at:
     www.forestry.uga.edu/warnell/tmart/prices.html
 
     Timber Mart-South is a 25-year old price reporting service publishing
 quarterly reports used by private companies, consultants, landowners, and
 others to assess market prices in the Southern U.S.  The University of
 Georgia, Warnell School of Forest Resources is under contract with the Frank
 Norris Foundation to compile and publish Timber Mart-South quarterly reports.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X50585615
 
 

SOURCE Timber Mart-South
    ATHENS, Ga., April 30 /PRNewswire/ -- Pine sawtimber stumpage prices fell
 further this quarter.  Markets were poor with lumber prices, in some cases,
 "too low for mills to profitably buy sawtimber."  Pine pulpwood and chip-n-saw
 also remained low.
     Salvage operations following December's ice storms in Arkansas and Texas
 forests meant pine pulpwood and, to some extent, chip-n-saw markets were
 glutted.  Both states and part of Louisiana saw 10-year low prices for
 pulpwood with chip-n-saw and sawtimber well below 10-year averages.
     Reporters said Mississippi and Alabama markets almost shut down along the
 coastal plain blaming low lumber prices, pine bark beetle, and CRP thinning.
 Alabama average pine pulpwood hit a 10-year low with chip-n-saw below 10-year
 averages.  On the other hand, in Mississippi, pine sawtimber prices went
 higher, especially on better sites.
     Reports show a concern that the logging community is "at its breaking
 point" and will not survive the poor market conditions in Georgia and Florida.
 Pine bark beetle infestations plagued an already depressed pine pulpwood
 market and Georgia pine pulpwood stumpage prices hit a 10-year low.
     Pine markets were poor in North Carolina, as well, with pine bark beetles
 flooding the market with pine pulpwood and pine plylogs.  A reporter in South
 Carolina cited poor markets and tight quotas for all pine products.  The only
 firm markets in Tennessee were for hardwood sawtimber.  Virginia sawtimber
 markets were up for the quarter but lower than last year with pulpwood markets
 fair.
     Hardwood sawtimber stumpage prices varied widely over the region.  Heavy
 rainfall in the western states of the region drove up hardwood prices as
 bottomlands became too wet to log. Texas, especially, saw continued higher
 prices for mixed hardwood sawtimber and pulpwood. Mississippi oak sawtimber
 reached all time high prices.
     Drier weather in the eastern states lowered mixed hardwood sawtimber
 prices but the localized demand for hardwood pulpwood kept some markets
 moving.  North Carolina markets for yellow poplar were good, and fair for
 hardwood chips.  Oak, especially red oak, is still in demand.
 
     Southeastern Average Stumpage Prices
                            Prices $/ton          year ago
                        1Q-01   4Q-00   1Q-00   up/dn   prcnt
     Pine Sawtimber     $34.11  $36.21  $42.00  ($7.89) (19%)
     Pine Chip-n-saw    $22.53  $25.88  $28.71  ($6.18) (22%)
     Pine Pulpwood       $6.73   $7.22   $9.06  ($2.33) (26%)
     Hardwood Sawtimber $17.66  $18.55  $17.26   $0.40    2%
     Hardwood Pulpwood   $4.60   $4.03   $4.41   $0.19    4%
 
     For trends, see ten-year graphs of southeastern average quarterly prices
 at:
     www.forestry.uga.edu/warnell/tmart/prices.html
 
     Timber Mart-South is a 25-year old price reporting service publishing
 quarterly reports used by private companies, consultants, landowners, and
 others to assess market prices in the Southern U.S.  The University of
 Georgia, Warnell School of Forest Resources is under contract with the Frank
 Norris Foundation to compile and publish Timber Mart-South quarterly reports.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X50585615
 
 SOURCE  Timber Mart-South