Pulpwood Stumpage Trends in Q2, 2023:
In the second quarter of 2023, statewide pine pulpwood stumpage prices averaged $8.89/ton, while the average hardwood rates were $8.54/ton in South Carolina. It is a dramatic decline in pulpwood prices from the first quarter of 2022 when pine and hardwood pulpwood stumpages were above $14/ton.
Sawtimber Stumpage Trends in Q2, 2023:
Unlike pulpwood prices, sawtimber prices for both pine and hardwood were in upward trajectory in this quarter which is a reversal from the trends seen in the last quarter. The statewide pine sawtimber prices were $24.38/ton, while mixed hardwood trees sold at $23.77/ton in the second quarter of 2023. Compared with prices in the last quarter, it is an increase of over 8% for both pine and hardwood trees (see figure below). The average sawtimber prices for both pine and hardwood in the year 2022 (average of all four quarters) were $24.30/ton and $23.60, respectively.
Data credit: The sawtimber and pulpwood price data included in this newsletter are published with permission from TimberMart-South Athens, GA 30605 email tmart@timbermart-south.com.
CAUTION: WOOD MARKET IS LOCAL. 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 higher price. This means, properly managed trees in good health and good quality would likely get more stumpage price than unmanaged trees.
Forest Industry Hot-Spots in South Carolina
South Carolina is one of the top timber harvesting states in the southern U.S. and has one of the highest carbon sequestration rates across the Southeast region. Timber harvesting and logging activities may negatively affect forests’ carbon storage amount, potentially converting them from carbon sinks to sources. Also, do-nothing could be an alternative strategy from a carbon sequestration and storage perspective, but it overlooks the economic and employment benefits of the forestry and forest-products industries.
Timber production and carbon sequestration could sometimes be competitive land use practices requiring forest managers to balance utilization and conservation benefits. Identifying hotspots of timber production and carbon stocks would be useful to balance development and economic activities with climate change mitigation and the carbon sequestration potential of the forests. Implementing forest management practices that increase stand growth rates would accelerate the carbon sequestration rate, while removing old and mature trees would reduce the carbon storage amount for some time.
From the hot-spot analysis of primary and secondary industries in SC, four major counties – Laurens, Union, Dorchester, and Colleton have a higher concentration of primary wood-processing industries. Likewise, four counties – Greenville, Spartanburg, Pickens, and Charleston have a higher concentration of secondary industries in South Carolina. In terms of timber harvesting, three counties – Berkeley, Dorchester, and Georgetown were hotspots of wood removals. Largely, primary forest-industries are established slightly farther away from the city areas with low land value and abundant raw materials. For the secondary industries, proximity to the urban areas is vital for increased market access and reduced transportation costs.
Forested counties with higher diameter classes and hotspots of higher merchantable volume should prioritize timber harvesting over carbon sequestration.
Author(s)
Puskar Khanal, Cooperative Extension, Forestry and Wildlife Specialist
This information is supplied with the understanding that no discrimination is intended and no endorsement of brand names or registered trademarks by the Clemson University Cooperative Extension Service is implied, nor is any discrimination intended by the exclusion of products or manufacturers not named. All recommendations are for South Carolina conditions and may not apply to other areas.
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