Sponsored by Lane Powell

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

Man for All Seasons

May 2015
Monday, April 27, 2015
BY LINDA BAKER

A longtime technologist and entrepreneur, Dwayne Johnson, 53, is managing partner of PDXO/GlobeThree Ventures, a strategy and business consultancy in Portland.


Read more...

Car Talk

April 2015
Thursday, March 26, 2015
BY LINDA BAKER

Everyone knows cell phones and driving are a lethal combination. The risk is especially high for teenage drivers, whose delusions of immortality pose such a threat to us all. Enforcement alas, remains feeble; more promising are pedagogical approaches aimed at getting people to focus on the road, not their devices.


Read more...

Editor’s Note: It’s a Man’s World

Linda Baker
Thursday, April 30, 2015
lindablogthumbBY LINDA BAKER | EDITOR

Earlier this week we posted an article from our May issue:  It’s a Man's Man’s Man’s World. The story covered the gender divide in tech from the perspective of male workers. Twitter didn’t like it.


Read more...

Picture This

May 2015
Monday, April 27, 2015
BY JACOB PALMER

As a general rule, the more people with autism can be provided with visual cues, the better they will be able to understand and manage their environment. It’s a lesson Tom Keating learned well. The 61-year-old Eugene grant writer spent 31 years taking care of his autistic brother James, and in the late 1980s developed a spreadsheet that created a series of nonsense characters that grew or shrank depending on how much money James had in his account. 


Read more...

City announces plans for Portland summer-league baseball team

News
Tuesday, March 10, 2015
IMG 3888BY JACOB PALMER | OB DIGITAL NEWS EDITOR

Baseball is returning to Portland and city officials are hoping economic opportunity comes with it.


Read more...

Knight Cancer Challenge No Biotech Dream

May 2015
Monday, April 27, 2015
BY JOE CORTRIGHT

The Knight challenge is an important instance of philanthropy. But we should not assume it will magically transform OHSU into a business- and job-spinning engine for the local economy.


Read more...

Energy Stream

May 2015
Monday, April 27, 2015
BY LINDA BAKER

Oregon already ranks as the nation’s second largest generator of hydroelectric power. (Washington is No. 1). Now an elegant new installation in Portland is putting an unconventional, sharing economy twist on this age-old water-energy pairing. The new system, launched this winter, uses the flow of water inside city water pipes to spin four turbines that produce electricity for Portland General Electric customers. 


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