Sawlog supply in US South tightening and a surplus of small logs and residues creates opportunities for pulp and wood pellet expansion

Pulp mills receive about one-third of harvested softwood roundwood in the US South. With the pulp sector not expected to expand in the short-term, wood fiber demand will not change much. With increases in residue supply from the expanding lumber sector, there will be less demand for softwood pulplogs, a trend that will probably intensify in the coming years. Pulp mills receive about one-third of harvested softwood roundwood in the US South. With the pulp sector not expected to expand in the...

Pulp mills receive about one-third of harvested softwood roundwood in the US South. With the pulp sector not expected to expand in the short-term, wood fiber demand will not change much. With increases in residue supply from the expanding lumber sector, there will be less demand for softwood pulplogs, a trend that will probably intensify in the coming years.

In the new Focus Report: US South Softwood Industry - Outlook for the world's most important softwood fiber basket, Wood Resources International (WRI) and O'Kelly Acumen establish a fact base around the forest resources and industry in the Southern US. The report also highlights plans for increased manufacturing capacity, reduced US lumber import needs, and opportunities for forest products exports from the world's largest softwood forest product-producing region.   

One of the conclusions from the study is that the expansion of the lumber industry in the South looks set to outpace wood fiber-based industries (pellets, panels, and pulp), potentially creating a deficit in demand for small-diameter logs and sawmill residues. Finding end-uses for smaller logs could be the most significant predicament for timberland owners in the US South in the coming decade. However, the surplus of small-diameter logs will create long-term opportunities to expand pulp and wood pellet sectors.

The excerpt above is from the just-released Focus Report "US South Softwood Industry - Outlook for the world's most important softwood fiber basket" published by Wood Resources International LLC and O'Kelly Acumen. For more information about the study or to inquire about purchasing the 85-page report, please contact either Hakan Ekstrom (hakan@woodprices.com) or Glen O'Kelly (glen.okelly@okelly.se). A Table of Contents of the report is available on our website. Click here!

CONTACT:

Wood Resources International LLC

Hakan Ekstrom

info@woodprices.com

www.woodprices.com

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