Suz-Anne Kinney
The MarketWatch Blog is Transitioning to ResourceWise Forest Products
Forest2Market: July 14, 2023
In 2013, prices for the wood raw materials used by pulp, paper, OSB and pellet mills gained modest ground over 2012 prices. As the following figure indicates, hardwood pulpwood prices increased most: $3.07 per ton over 2012 to an average of $36.67 per ton, while pine pulpwood gained $1.81 per ton to $31.71 per ton.
High hardwood pulpwood prices are driven primarily by markets in the South (primarily planted in pine) where hardwood pulpwood supply is hard to come by. These mills must source hardwood from greater distances and so the freight charges push the delivered cost higher.
The five-year trend for pulpwood was also higher: hardwood pulpwood gained $4.70 per ton over 2009 prices and pine pulpwood prices gained $3.95 per ton over 2009 prices.
The following figure compares pine pulpwood and pine chip-n-saw (DBH higher than 8.6” but under 13”). Even though mills in this category sometimes buy chip-n-saw, the price differential between the two products--$5.66 per ton in 2013—shows why this type of substitution is marginal.
Wood fuel pricing has remained remarkably steady over the last five years, trading between $19.46 and $20.65 per ton. The 2013 average delivered price increased by $0.45 per ton, though this is $0.22 less than the price in 2009.
*All prices quoted herein are southwide volume weighted average prices and include stumpage, harvest and haul, as well as dealer or broker margins. Source: Forest2Market's US South Delivered Price Benchmark Service. ©2014 Forest2Market, Inc. All rights reserved.
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