Welcome to the 2021 F&W Market Update, where we share the latest news from our
regional managers on timber markets and other developments that impact forest
landowners in F&W’s operating footprint. The information in this report is based
on a survey of managers from Jan. 22-26. We hope you continue to find these
updates useful and we welcome your feedback and suggestions.
U.S. Southeast
Most Southeastern managers report timber activity and prices to be picking up
and increasing, with the overall market an even mix between normal for this time
of year to above normal. The manager in northeast Florida reports that the
Binderholz Group is reopening the old Klausner lumber mill at Live Oak, Fla.,
and Georgia-Pacific’s pulp mill in Perry is slowly increasing capacity from the
curtailment due to the pandemic. The manager in South Carolina reports that the
New-Indy mill in Catawba, S.C., started a new paper machine in January,
replacing the one that went offline last May. Several managers state that pine
chip-n-saw is doing quite well, with the manager in South Carolina stating that
prices are at or above historical levels with good market demand. The manager in
Alabama concurs: “Prices are above ‘normal’ (at least compared to the last
couple of years) for chip-n-saw across most of our region. Market feedback
suggests this should continue through at least the first quarter. As is common
this time of year, timber sales that are wet weather-operable and accessible can
bring a significant premium. Pulp markets are relatively flat.” The manager in
Virginia states that an extremely wet fall, followed by a wet start to winter,
“created spot price opportunities for tracts with immediate access and ground
conditions to support logging.” The manager in Florida says, “Markets remain
good and increasing for solid wood products across the region. Pulpwood demand
remains strong in some sub-regional locations.” The manager in Southwest Georgia
said there have been significant increases in chip-n-saw prices and moderates
increases for sawtimber in the last few weeks.
U.S. West Gulf
Managers in the West Gulf report normal timber activity and prices, with sales
activity ticking up. The manager in Texas reports that mills are periodically
shutting down for short-term periods of one to three days depending on
inventory, while the manager in Mississippi states that the wet weather is
keeping mills open and increasing demand and pushing “prices back to normal for
this time of year.” The Texas manager says buyers are looking for dryer tracts
as the wet season progresses, and the manager in Arkansas reports that Highland
Pellets plans to spend $135 million to upgrade and expand its facility at Pine
Bluff.
U.S. Northeast
Northeastern managers report normal timber sales activity and markets in their
region, with prices average to increasing. One New York manager states pulpwood
demand is down, impacting some planned harvests, but that hardwood log demand
and prices are increasing. The other New York manager reports, “Overall markers
are decent with softwood sawlogs in demand with good pricing and hardwood
sawtimber also doing well. Pulpwood in the region that goes into free sheet
paper like copy and office is still suppressed.” Lastly, the manager in Vermont
notes that hardwood and softwood logs are strong. “Hardwood has seen the
greatest price increases over the past month and we will continue to see
increases there. Hardwood pulp and chips are down and will continue to be down
for the foreseeable future.”
F&W Forestry Services
P. O. Box 3610, Albany, Georgia 31706
email: fw_newsletter@bellsouth.net
Visit us at: www.FWForestry.net