FRA Bulletin - May 14, 2010
Volume 12, Number 6
"Prospects for sawmill profitability have increased significantly in 2010, leading curtailed and closed sawmills in the South to reopen," observes Forest2Market in a May 6 news release, pointing to a "gap between input and output prices" in Southern yellow pine although indeed noting rising sawtimber prices. Forisk Consulting reported a 6.1% increase in pine sawtimber consumption in the South during the first quarter, and a 1.1% demand increase for pulpwood, venturing: "Look for pulpwood demand to reach pre-decline levels by 2013, as OSB and bioenergy facilities increase consumption."
First-quarter reports from paper companies generally included optimistic forecasts, including from the fine papers sector, although in the meantime the recent rise in the value of the dollar against the euro may mean that the protection currency factors have provided to U.S. basic industries' international competitiveness may soon fall away.
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