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

Demand for sawdust rises as the board market drops

| Print |  Email
Archives - April 2008
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

Fork & Bottle

October 2014
Thursday, September 25, 2014

National media can’t get enough of Oregon’s pinot noir, artisan-food purveyors and lively, independent film scene.


Read more...

Constant Contact

October 2014
Thursday, September 25, 2014
BY AMY MILSHTEIN

To prevent burnout, companies are banning email and after-hours communications. But is the 24-hour workday here to stay?


Read more...

Fast Food Slows Down

September 2014
Tuesday, August 26, 2014
BY KIM MOORE

The ubiquitous fast-food restaurant may be on the decline.


Read more...

100 Best Nonprofits to Work for in Oregon [VIDEO]

News
Thursday, October 02, 2014

Screen shot 2014-10-02 at 11.17.21 AMMore than 5,500 employees from 180 organizations throughout the state participated in the 100 Best Nonprofits to Work for in Oregon project.


Read more...

Two Sides of the Coin

Contributed Blogs
Friday, September 26, 2014
0926 iphone6-thumbBY JASON NORRIS | GUEST BLOGGER

This post focuses on the recent release of the new Apple iPhone as well as Alibaba's IPO, the largest U.S. IPO in history.


Read more...

Books Rule

October 2014
Thursday, September 25, 2014
BY JON BELL

Powell's stays relevant in the digital age.


Read more...

Innovation: a critique

News
Wednesday, October 08, 2014
1008 innovation thumbBY LINDA BAKER | OB EDITOR

A Design Week panel discussion raises questions about how innovative we really are.


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