Wood Chip Prices Continue to Soar in the Pacific Northwest

By John Greene
Forests2Market Blog
November 10, 2022
Category: Finance & Economics
Region: United States, US West

Conifer wood chip consumers in the Pacific Northwest (PNW) continue to find themselves in a tough situation, as a convergence of events has pinched supplies and driven prices to some of the highest levels since Forest2Market began collecting transaction-based data in the region more than 12 years ago. What is driving the rapid change in the western chip market? …The Weyerhaeuser labor union strike… reduced sawmill chip availability on the market, and the company’s woodlands also haven’t been producing pulpwood that is traditionally sold to whole log chippers. …Softwood lumber production in the west is down roughly 5% YTD, which has resulted in a decrease in residual chip supply and a decrease in log availability. …Log trucks are in short supply, loggers are struggling to keep their production moving. …For now, viable alternative solutions are few, and mostly rely on higher pricing to create incremental sources.

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