From biomass suppliers in the Baltics to pulp producers in Brazil and TIMOs in the United States, Forest2Market provides products and services for suppliers, producers and other stakeholders in the global forest products industry.
Figure 8.1 Coniferous standing sales and sawlog price indices1,2 in real terms3, 2012-2018.
While this minimizes diversity and significantly improves the ability to accurately determine stand volume, there is still plenty of variation due to a few important factors: When combining all of the above factors, it is evident that many influences contribute to the overall volume of wood on any given stand of timber in the US South. The Softwood Sawlog Price Index was revised in May 2017 to correct a number of inconsistencies in the coverage of the underlying data. Prices are based on an average calculated from a sample of timber buyers across the U.S., and only intended to provide an estimate of trends and current prices. Individual age class data is unavailable for natural stands of timber, however, the harvest information of natural pine stands illustrates similar price-per-acre ranges as the plantation pine harvest data.
Forest2Market’s transaction-based data from actual timber sales throughout the US South over the last year (7/17 - 6/18) helps us answer the larger question. While the trees themselves mature and provide you with money, you're also going to have your land value increase.
Timberland Type .
Standing timber and sawlogs are distinct markets, and may show different price movements. Prices for outputs of primary wood processing are collected by the Office for National Statistics (ONS) in the Producer Price Indices (PPIs), and these are available in the MM22 dataset which gives detailed PPIs monthly. The Coniferous Standing Sales Price Index monitors changes in the average price received per cubic metre for timber that the Forestry Commission/ Natural Resources Wales sold standing, where the purchaser is responsible for harvesting. Consumers of wood raw materials want to know the answer to this question so they can maximize efficiencies and seek out the most affordable resources, and timberland owners want to know so they can get a general estimate of how much their timber is worth.
The clearcut price per acre on natural pine stands is slightly higher due to the presence of some hardwood sawtimber that is harvested along with the pine during a clearcut, which carries a higher price than pine in the current market. For example, larger pine logs used to manufacture top-quality grades of lumber are more valuable in a region with multiple sawmills than are smaller logs that are converted to woodchips to make pulp and paper products. This mixture of harvested timber products will ultimately affect the price per acre. There are a couple of considerations to keep in mind when analyzing the natural pine data: Naturally regenerated stands of pine timber often have a higher density of trees than do plantations. Real terms values are obtained by using the GDP deflator to convert to "constant prices" (in this case prices in 2016). As a result, the size of the trees removed during thinnings and clearcuts are quite different and therefore vary in value. Management costs per acre range from $5 to $45, so youre sure to make your money back on your investment. Raw material price volatility is perhaps the single biggest enemy of successful budgeting for manufacturers.
Timber Price Indices are based on sales of softwood (conifers) by the Forestry Commission and Natural Resources Wales and are released every 6 months. Australasia's home for timber news and information. Regardless of who’s asking, my go-to answer to this question as a consulting forester has always been, “It varies considerably.”. "Ash". The price indices are constructed from information on sales by the Forestry Commission/ Natural Resources Wales only. 2. This allows trends in timber prices to be tracked without the influence of inflation.
Even mixed stands of timber (both pine and hardwood) can have large variations due to the size of the trees, the density of trees, and the percentage of the area that is covered by pine vs. hardwood. Source: Forest2Market by Jay Engle. The standing sales index excludes sales by Natural Resources Wales from April 2017. However, there are a couple of notable trends as well: Individual age class data is unavailable for natural stands of timber however, the harvest information of natural pine stands illustrates similar price-per-acre ranges as the plantation pine harvest data. Timberland owners in the US South who manage their land for timber production predominately manage for the growth of large pine logs. Clearcut harvests will remove trees in all three categories noted above, whereas thinnings will remove only pulpwood and smaller logs that fall into the chip-n-saw category. Detailed data by harvest type, predominately from pine stands, demonstrate that: Timberland type also plays a significant role in the total tons per acre at harvest.
However, it is important to note a clearcut will remove all standing timber on a tract of land, which, even in the case of a managed forest in the 26+ age class, will include both pulpwood and chip-n-saw logs.
Get in touch with us today! Explore Forest2Market's Interactive Business Intelligence Platform.