News

January 07, 2010

Whistling In The Woods?

By Sally White

Are they whistling to keep their spirits up, or will international wood, pulp and woodland markets really climb out of the trough in 2010? There are price increases being posted by a few US producers, at least. The US Engineered Wood Association is forecasting plywood production to increase by four per cent in 2010.In an industry report just out, the International Woods Market Group puts its view that “the worst is almost over for the North American softwood lumber market as improving demand in 2010 is expected to breathe some life back into a beaten up industry.”

Sceptics, however, while welcoming price rises as a possible leading indicator or recovery, are saying words to the effect that one cuckoo does not make a summer! The latest US Natural Resources report comments that any rise being seen in orders “is unlikely to become a trend since it is probably being caused by filling retailers’ low inventories, rather than fundamental demand.” Squashing hopes firmly it adds: “While the October lumber price is in the same range as a year ago, the log price is...