10 Predictions for Global Wood Consuming Industries in 2018
Posted by Forest2Market.com
- Pulp market will continue to race forward.
With China’s moratorium on Mixed Paper imports (as a feedstock), many pulp mills in China are converting to virgin pulp at a time when market demand is increasing. Two million tons of pulp production will come on line in late 2018, and the trend won’t abate until then. Pulp prices will remain at record levels, incenting capacity expansions and likely acquisitions/disposition of working pulp assets.
- US South sawtimber markets will remain flat.
Damage from Hurricanes Harvey and Irma in the US South added new demand for sawtimber to (slowly) strengthening housing starts numbers and a tight housing market, which drive pine sawtimber harvests. Even with 1 billion board feet (BBF) of new production coming on line, sawtimber growth will still exceed demand in every market. Expect volume to pick up, but not price.