The Northeast and Appalachia regions have been exporting large volumes of hardwood logs and lumber to China, but this lucrative market has dropped by almost a third after the trade war started. US hardwood exports to China – worth $2 billion annually – are currently reeling from 25% tariffs, and the impacts are being felt across the supply chain. Overall, the southern sawtimber stumpage prices have been almost flat over the last ten years, but pine pulpwood prices have shown some promise over the same period.
Sawtimber stumpage price trends: The pine sawtimber prices indicated a higher rate of decline than the mixed hardwood sawtimber prices in the third quarter of 2019. Statewide, South Carolina pine sawtimber stumpage (standing timber) prices, on average, were $23.11/ton in the third quarter of 2019. It is a decline of about 4.6% as compared to the prices for pine sawtimber in the previous quarter. For mixed hardwood sawtimber, statewide prices, on average, were $24.41/ton in the third quarter. It is a decline of about 1.2% as compared to the prices for mixed hardwood sawtimber in the previous quarter.
Pulpwood stumpage price trends: South Carolina statewide pine pulpwood prices, on average, were $10.04/ton in the third quarter of 2019. It is a decline of above 9.6% as compared to the prices in the last quarter. For mixed hardwood pulpwood, the statewide stumpage prices, on average were $9.34/ton in this quarter. It is a decline of about 6% as compared to the prices in the last quarter.
However, stumpage prices for both sawtimber and pulpwood in your local markets could vary significantly as compared to the above statewide averages depending on size and species composition, quality of timber, total acres and volume, logging operability, distance from nearby mills, and overall market condition. Managed timber stands with large, straight, and quality trees with clear logs (logs without knots or branches) that could be used for lumber, veneer, or export products generally get a higher price. This means properly managed trees in good health and of good quality would likely get a higher stumpage price than unmanaged trees. Trees that are blown down or broken during hurricanes or ice storms also have residual value, but their value would be somewhat less than standing trees.
One common mistake some landowners make while selling their timber, is to accept the first offer without waiting for other offers. Competitive bidding by timber buyers tends to ensure that fair market value for timber is offered.
For more information, please refer to the SC Forestry Market Quarterly Updates Archive, https://www.clemson.edu/extension/timber-market/
This article was originally featured in the Winter 2020 Version of CU in The Woods newsletter.
Author(s)
Puskar Khanal, Cooperative Extension, Forestry and Wildlife Specialist
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