Home Archives April 2008 Demand for sawdust rises as the board market drops

Demand for sawdust rises as the board market drops

| Print |  Email
Tuesday, April 01, 2008

sawdust.jpg

STATEWIDE Prices have gone so haywire in the timber industry that Oregon loggers are selling perfectly good Western Hemlock and Douglas Fir logs to be ground into chips for pulp instead of processed into lumber.

“Usually we sell the lowest, cheapest product we’ve got for pulp,” says Randy Hereford, timber manager for Starker Forests in Corvallis.  “Now the board market is so weak that pulp is our best option.”

The precipitous drop in demand for home-building supplies has hit Oregon’s lumber producers hard. Western Oregon log prices fell by 19% between the fourth quarters of 2006 and 2007 and have slid 143% since their peak in 1993 when adjusted for inflation.  The latest casualty was the Weyerhaeuser plant in Junction City, which closed in March.

Meanwhile, the drop in lumber production has decreased the supply of wood chips and sawdust, and prices for those unglamorous commodities have shot up. According to the Wall Street Journal, the price of sawdust has quadrupled in the past two years, from $25 to $100 a ton. That’s bad news for businesses that buy large volumes of wood waste, such as farmers, horse trainers and nurseries. One would think it would be good news for producers of wood residuals, but Bill Putney, of Recycling and Processing Services in Salem, says he loses those gains to higher production and transportation costs from rising fuel prices.

“The money looks nice as it moves from your right hand to your left hand and then out the door,” says Putney, “but it’s just more money circulating. You’re handling more dollars, but you’re not making any more money.”                         

BEN JACKLET


Have an opinion? E-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

More Articles

The 2014 100 Best Companies to Work for in Oregon

News
Friday, February 28, 2014

100best14logo ThumbnailThe 21st annual 100 Best Companies to Work For in Oregon list was announced Thursday night at an awards dinner at the Oregon Convention Center.


Read more...

From the Editor: The human factor

March 2014
Tuesday, February 25, 2014

In this issue, we celebrate our 21st annual 100 Best Companies to Work For in Oregon project.


Read more...

The more they change, the more they stay the same

March 2014
Tuesday, February 25, 2014
100-best-collageBY BRANDON SAWYER

The 100 Best Companies get more creative with perks and more generous with benefits; employees seek empowering relations with management and coworkers.


Read more...

Tech makes the world go round

Contributed Blogs
Thursday, March 20, 2014
03.20.14 thumb internetBY JASON NORRIS | GUEST BLOGGER

I don’t think anyone can (or should) remember what it was like to get things done without the internet. This milestone in technology has certainly benefited brick-and-mortar companies and subsequently launched a new era of businesses.


Read more...

The future of money

March 2014
Tuesday, February 25, 2014
BY JAKE THOMAS

An ancient institution moves slowly into the digital age. 


Read more...

Video: Kickstarting Oregon business

News
Thursday, March 27, 2014
02.04.14 Thumbnail VideoBY JESSICA RIDGWAY | OB WEB EDITOR

Watch this OB Original Video about three Oregon companies and how crowd-funding "kickstarted" their business ideas.


Read more...

Green your workplace

News
Thursday, April 03, 2014
100Green14logo200oxBY OB STAFF

Learn how to green your workplace and lower your environmental footprint at the office. Oregon Business presents a two-hour "Greening Your Workplace" seminar on May 28th, 2014 at the Nines Hotel in Portland.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS