Lumber supplier Pope Resources says a new sawmill in Washington and diminished imports of Canadian logs are driving up its prices. “Log markets in our operating regions are strong due to a multitude of demand and supply factors,” said Tom Ringo, President and CEO. “Continued improvement in housing starts is supporting domestic log prices and export demand is generally adding pricing tension to our markets.”
Ringo said a new sawmill in the Hood Canal area of Washington State has added a second production line, creating incremental demand for its logs.
“The recent fire situation in British Columbia is starting to crimp lumber supply coming to the U.S., further tilting lumber pricing drivers in favor of regional domestic mills, and derivatively pushing up demand for our logs,” says Ringo. “On the supply side, reduced harvest volumes and sales from our competitors have put upward pressure on our log prices.”
Pope Resources reported net income of $158,000, down 60 perecent from a year ago, on revenue of $15.9 million, about 25 percent, for the quarter ended June 30, 2017.
“Our 2016 harvest activity was heavily weighted toward the back end of the year,” Ringo said. “In 2017 we will have a fairly balanced spreading of volume across the quarters. As such, the first half of this year compares quite favorably with last year given the significant year-to-date harvest volume coupled with the higher log prices we are seeing.”
From Woodworking Network: http://www.woodworkingnetwork.com/wood/pricing-supply/log-and-lumber-export-demand-adds-tension-pricing-says-pope-resources-ceo?ss=news,news,woodworking_industry_news,news,almanac_market_data,news,canadian_news