The global forest products industry has undergone a number of significant changes this year – some expected, and some unexpected. However, the industry as a whole remains solidly profitable and structurally sound despite changing demand patterns and supply chain strains that continue to be a source of frustration across the entire economy.
Most importantly, the forest value chain is well-positioned for a future that is eager to embrace natural, sustainable, and renewable solutions that help mitigate the effects of climate change.
In light of all that has transpired in 2022, we wanted to take an opportunity to look back and see which topics resonated the most with visitors to Forest2Market’s MarketWatch blog throughout the year.
It’s also a great opportunity to offer our sincere gratitude to the contributors and regular readers of our blog and newsletters. We are delighted that you find continued value in our content. We wish you a safe, warm, and joyous holiday season and we look forward to providing you with fresh industry insights and meaningful content in 2023.
The Top 7 Most Popular Blog Posts of 2022
- Are Southern Log Prices Finally Catching up to High Lumber Prices?
North American softwood lumber prices are once again creeping back near the record highs that were reached in 2Q2021. Forest2Market’s composite southern yellow pine (SYP) lumber price for the week ending February 25 was $1,083/MBF, which represents a YoY increase of 16% and an astounding 200% increase over the same week in 2020 – just before the initial impacts of the pandemic hit the US economy.
- Southern Timber Prices Continued Upward Trend in 4Q2021
Continuing the strong demand trend from 3Q2021, the weighted average price for southern timber once again surged to a new 14-year high in 4Q. Stumpage prices were up +5 percent quarter-over-quarter (QoQ) and +21 percent year-over-year (YoY). The last time Forest2Market’s Southwide weighted average stumpage price was this high was in 4Q2007, just before the onset of the Great Recession.
- Softwood Lumber Prices Tumble 40%; Is Another Rally on the Horizon?
The volatile North American softwood lumber market continues to keep us all guessing as we enter mid-2Q2022. After spending most of 1Q above the $1,000/MBF mark, week-over-week southern yellow pine (SYP) lumber prices dropped dramatically throughout the month of April and into early May. Forest2Market’s composite SYP lumber price for the week ending May 6 was $674/MBF, which represents a 41% decrease compared to prices just seven weeks ago ($1,136/MBF). A closer look at some of the price trends thus far in 2022 illustrates the volatility in the market.
- Anti-Forestry Insanity: The Opinion Piece That Keeps on Giving
Solving the challenges posed by climate change and a rapidly evolving global economy in the 21st century will require dispassionate, science- and reason-based strategies from multiple stakeholders. It is time to move beyond the feel-good song lyrics and ideological talking points of a bygone era, which have failed America's forests, natural resources, and rural communities for decades.
- Southern Timber Prices Continued to Climb in 1Q2022
Continuing the strong demand trend that we witnessed during most of 2021, the weighted average price for southern timber surged to a new 15-year high in 1Q2022. Stumpage prices were up +5% quarter-over-quarter (QoQ) and +19% year-over-year (YoY). The last time Forest2Market’s Southwide weighted average stumpage price was this high was in 2Q2007, just before the onset of the Great Recession.
- Lumber Market 2021 Year in Review: What’s Next?
Forest2Market’s southern yellow pine (SYP) lumber composite illustrates the wild price volatility the market experienced over the last two years. Even the week-over-week (WoW) price performance has shown periods of stark contrast, especially in late 4Q2020 and 4Q2021 in which we saw double-digit WoW increases.
- How Do Lumber Producers Determine Log Value?
The red-hot softwood lumber market has garnered a lot of attention over the last two years. Inquiring minds from Main St. to Wall St. have been interested in the rapid rise of finished lumber prices, as well as the relationship between timber prices and lumber prices and the inner workings of the forest supply chain in general. One question we hear pretty regularly from those specifically interested in lumber manufacturing is this: How does a mill’s management team know which logs to use to optimize production, and how do they determine a log’s value?