Timber Mart-South Reports Sawtimber Markets Weak, Pulpwood Strong

ATHENS, Ga., March 5 /PRNewswire/ -- Timber Mart-South's Southeasternaverage sawtimber and pulpwood prices moved in different directions in2007. Pine sawtimber prices declined in response to lower lumber productionand ample timber supply. Pulpwood prices rose in response to stronginternational paper markets and substitution effects due to the lumberslowdown. Pine sawtimber prices fell 3.1% to US$37.05 per ton, and pinechip-n-saw prices fell 11.1% to US$19.67 per ton. Twelve-year lowresidential housing starts exerted downward pressure on pine sawtimberprices due to lower softwood lumber volume, with production down about 11percent in the South. Softwood lumber prices were at record lows for mostof 2007. Consistently good logging conditions from the recent droughtacross the eastern half of the South resulted in ample timber supplyfurther depressing prices.
One year change in South-wide average stumpage prices US$ per ton 2007 2006 % Change Pine Sawtimber $37.05 $38.25 - 3.1% Pine Chip-n-saw $19.67 $22.13 -11.1% Pine Pulpwood $ 7.86 $ 6.56 19.8% Hardwood Sawtimber $21.90 $20.88 4.9% Hardwood Pulpwood $ 6.63 $ 5.84 13.5% In contrast, pine and hardwood pulpwood prices rose in 2007 due, inpart, to stable domestic and strong international pulp and paper markets.US pulp exports grew 21% this year to a ten-year high. The U.S. alsoincreased exports of pulpwood logs and wood chips. Lower lumber productionalso buoyed pulpwood prices by reducing the amount of low-cost sawmillbyproducts available for pulp production. Timber Mart-South provides quarterly timber price and news reportswhich are used by companies, consultants, landowners, and analysts toassess market conditions in the Southern U.S. Reports include stumpage anddelivered prices of five pine and three hardwood products. Historical dataseries and archived reports span 1976 to the present with archived newssince 1995. For more information, visit our website at http://www.timbermart-south.com.