REGIONAL ANALYSIS OF U.S. SAWN HARDWOOD PRODUCT PRICES FROM 2000 TO 2020

William G. Luppold, Matthew S. Bumgardner

Abstract


An examination of hardwood lumber prices in the eastern United States adjusted for inflation and regional differences in forest composition found declines in aggregate (combined species) prices across all regions. The greatest declines occurred in the Northeast and Lake States regions with smaller declines occurring in the Central, Southern, and Mid-Atlantic regions. With the exception of white oak and walnut, prices of high-value species declined more than prices of low-value species. For most of this century, the Northeast region has had the highest aggregate prices for lumber products. However, the Central region had the highest price for high-quality lumber since 2017. While lumber prices have declined, prices for industrial hardwood products increased. In 2020, the price of pallet cants exceeded the price of lower quality hardwood lumber for most species, and crosstie prices exceeded that of aggregate mid-quality lumber. The declines in hardwood lumber prices were the result of reduced domestic demand and insufficient increases in exports to offset this decrease. While increased domestic and export demand will result in increased prices, the prolonged period of low lumber prices may reduce the expected returns to timber management.


Keywords


Hardwood lumber, lumber prices, pallet prices, crosstie prices, forest composition

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References


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