Lumber Pricing & Supply

MeadWestvaco Corporation, a global leader in packaging and packaging solutions announced its preference for purchasing certified wood – specifically wood that is certified under the American Tree Farm System.

With record hardwood lumber exports prices continue to climb with some exporters running out of wood to sell and some buyers suspending purchases until prices fall.

Two well-respected providers of high-end architectural building products in Western New York, Thruway Hardwood & Plywood Corp of Cheektowaga NY and D & M Plywood, Inc. of Buffalo NY, announced the merging of their companies.

Thruway Hardwood & Plywood Corp. of Cheektowaga NY and D & M Plywood, Inc. of Buffalo NY, will merge, the companies said today.

Sawlog prices in Europe were generally lower in 2012 than in 2011 because of lower log demand from the sawmilling sector, reports the Wood Resource Quarterly. Many sawmills on the continent have been forced to reduce production as a result of the weak lumber market. Log prices fell the most in the Nordic countries, while prices in Eastern Europe were steady or even slightly higher toward the end of 2012.

Gains in residential and commercial construction will help spur sales for red oak and poplar. Exports also remain brisk. The outlook for white oak, however, is not as good.

The lumber market in the US really took off in late 2012 and early 2013. Lumber prices in February were more than 60 percent higher than in late 2011. Increased lumber production has put upward pressure on sawlog prices and in the US Northwest, Douglasfir sawlog prices reached a five-year high in the 4Q/12, according to the North American Wood Fiber Review.

Improving economy and housing market will increase domestic wood furniture sales but tight lumber supplies could lead to higher hardwood prices.