Article on American logging industry

Mike1950

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i ran across this, thought i'd share the link

and record prices here for lumber products- Some of the Professors math is very questionable. Why covid would disrupt mills and logging is beyond me- outside work. only see PNW and Mt. but our lumber industry is cooking.. so is construction. We have a train below us in valley- in 2010- it was 10 cars long. now they rebuilt tracks- the cars are full and there are 50 of them- Lumber. same coming up gorge-lumber going both ways on trains...
 

vegas urban lumber

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and record prices here for lumber products- Some of the Professors math is very questionable. Why covid would disrupt mills and logging is beyond me- outside work. only see PNW and Mt. but our lumber industry is cooking.. so is construction. We have a train below us in valley- in 2010- it was 10 cars long. now they rebuilt tracks- the cars are full and there are 50 of them- Lumber. same coming up gorge-lumber going both ways on trains...
thanks for the ground level insight. i am often skeptical of media news
 

Mike1950

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thanks for the ground level insight. i am often skeptical of media news
Economy is good considering. And her we have been building apartments like crazy for a decade. Now people seem to be shying away from being packed together like sardines. We have record low inventory and they are building mini houses everywhere. Prices are through the roof.
I seriously doubt China trade deal has anything to do with it. And maybe the professor should go outside look around and price lumber. Most of the timber in states goes to construction or paper...
 

Nubsnstubs

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the third paragraph got me to thinking it was a political hit piece, and then, there it was, near the end....... I tried to get the quote, but the site wanted me to join........... Oh well.......... Jerry (in Tucson)
 

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Trev,

Mike is on track. I think it was an Asian log yard, with possible American based logs, not sure. The yellow pine industry took a real hit, as did disposable furniture. The demand for US made furniture actually has gone up. With low interest rates, many new home construction sites are on the rise, even with inflated building supply prices. Some of the inflation is real, some, transportation issues and some is international trade issues. Logging was not the issue, but processing further down the line got bottle-necked, some trade issues and some covid. The ash market was super heavy in China from 2016-2019 but quickly shrank. Some say trade issues, some say the Chinese don't want their ash borer beetles back. The ash die-off has flooded the US market along the infestation line, driving the prices down.

Locally, fuel safety taxes have risen and many are turning to wood for heating again. This is helping loggers stay active, but not a long term safety net. Those new to the trade will likely fail and those long in the tooth retire. This struggle will take 2-3 seasons (years), reduce the logger base, reduce the log market and maybe establish log prices or even increase them a bit.

The guy failed to mention that Chinese demand is at Chinese prices and many log prices have been running with numbers similar to 20 years ago. The cost of equipment has risen 40% in those 20 years. There are a lot of items that play a role, he may have had some of them right given his perspective and his exposure.
 

sprucegum

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i ran across this, thought i'd share the link

Not really buying it. Softwood saw logs are moving very well in the NE at record or near record prices. Hardwood markets are holding their own. Pulpwood has taken a hit due to low demand for paper caused in part by the China virus. The fuel chip market is a little soft due to low oil prices but that market has picked up some lately. So much BS in the news now days about the economy, I think it is booming our VT. unemployment rate is 3.2 percent. It is impossible to hire people with any skills.
 

Mr. Peet

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Not really buying it. Softwood saw logs are moving very well in the NE at record or near record prices. Hardwood markets are holding their own. Pulpwood has taken a hit due to low demand for paper caused in part by the China virus. The fuel chip market is a little soft due to low oil prices but that market has picked up some lately. So much BS in the news now days about the economy, I think it is booming our VT. unemployment rate is 3.2 percent. It is impossible to hire people with any skills.

We have thousands of jobs open, for some reason people between 20 and 30 don't want to work.

Our pulpwood and chip markets have been dead for years thanks to P&G using Chinese pulp. Softwood prices still down here, but hardwoods are holding.
 

vegas urban lumber

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Not really buying it. Softwood saw logs are moving very well in the NE at record or near record prices. Hardwood markets are holding their own. Pulpwood has taken a hit due to low demand for paper caused in part by the China virus. The fuel chip market is a little soft due to low oil prices but that market has picked up some lately. So much BS in the news now days about the economy, I think it is booming our VT. unemployment rate is 3.2 percent. It is impossible to hire people with any skills.
thanks for your insights. i am glad to see that this site is a source of reality that can keep BS media from propagating more BS
 

sprucegum

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We have thousands of jobs open, for some reason people between 20 and 30 don't want to work.

Our pulpwood and chip markets have been dead for years thanks to P&G using Chinese pulp. Softwood prices still down here, but hardwoods are holding.
I think our log prices have held because none of the big mills closed due to the virus but they did stop buying logs for a short time last spring. They were anticipating a huge downturn in the lumber market. By the time they realized that demand was going through the roof they had depleted their log inventory and many loggers were shut down for spring mud season. Most of the paper mills are gone anyway but wood fired generating plants and large intuitional buildings that heat with chips have picked up some of the slack. My son has a self unloading chip trailer that allows him to unload at schools and other places that burn chips for heat, it not a big market but a load or 2 a week helps out and it pays a little more than the power plants.
 
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