With U.S. new home sales rising 23 percent compared to the annual pace of 2015, California timber operators say they’re guardedly optimistic about improving markets for harvested logs and lumber products. But they note the outlook can vary greatly, depending on the type of wood, where it’s grown, forest health and market conditions.
The pace of wood processing is picking up in California, with mills such as Redwood Empire Sawmills in Cloverdale receiving more log deliveries from coastal timber stands. Loggers say the market has improved but margins remain tight and forest conditions have been worsened by drought, which has contributed to the deaths of millions of trees in California forests.
“The timber market is better than 2008 when the recession hit, but it’s not breaking any records,” said logger Mike Anderson of Fort Bragg. “Margins now are exceptionally tight because of exorbitant costs of regulation, transportation and manufacturing.”
There are many wild cards that can impact lumber prices, Wood Markets analyst Gerry Van Leeuwen said. “A big element impacting the lumber price outlook will be the industry’s schedule or strategy for putting curtailed or even closed sawmill production back online, not to mention whether log inventory companies are willing to build in advance of demand,” Van Leeuwen said.
California loggers are back in the woods and busy, Anderson said, noting current market log prices are generally up about 15 percent compared to last year as forest harvest season gets underway.
From the Sierra Sun Times: https://goldrushcam.com/sierrasuntimes/index.php/news/local-news/6954-california-timber-market-improves-amid-concerns