SEATTLE, Wash. -  Wood cost is the factor that often determines the competitiveness of a pulp manufacturing plant or region, because it is the largest cost component when producing wood pulp. During the past few years, this cost has varied between 45% and 70% of the total cash cost, depending on product grade and the costs of other components such as chemicals, energy and labor.

Low fossil fuel prices have reduced the demand and prices of woody biomass throughout the U.S. the past three years, reports the North American Wood Fiber Review. The Pacific Northwest has the lowest biomass prices, slightly lower than the South, while the Northeast continues to have among the highest costs in the country.

The wood commodity increased compared to the previous year.

Potlatch reported its 2011 second quarter financial results.

The U.S. Commerce Department reports that the international trade deficit in goods and services decreased to $42.8 billion in July from $49.8 billion (revised) in June, as exports increased and imports decreased.