WRI Report Focuses on Tight Sawlog Supply in Southern U.S.
The sawmill industry has significantly increased capacity over the past decade.
SEATTLE (Scrap Monster): The new Focus Report published by Wood Resources International (WRI) and O’Kelly Acumen outlines facts around the forest resources and industry in the Southern US. The report indicates that sawlog supply in the region is tightening.
According to the report, the softwood industry in U.S. South has enormous potentials, with significant forest resources, low and stable wood costs and a thriving lumber and pellet manufacturing sector. The region’s forest industry is set to grow in the coming years. This expansion may result in tighter log markets, WRI noted.
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The sawmill industry has significantly increased capacity over the past decade. The region’s share of lumber production has grown from 26% of total North American production in 2011 to 33% in 2021. The ongoing capacity expansion will help to reduce the U.S. lumber import demand in the forthcoming years.
The WRI says that the pulp sector is not expected to witness expansion in the short term. As a result, the wood fiber demand is unlikely to change much. The softwood pulplog demand will continue to witness drop in demand.
The expansion of the U.S. South lumber industry will outpace wood fiber-based industries such as pellets, panels and pulp.