Sawlog supply in US South tightening and a surplus of small logs and residues creates opportunities for pulp and wood pellet expansion
The region has a significant forest resource with room for expansion, low and stable wood costs, and a thriving lumber and pellet manufacturing sector.
- The region has a significant forest resource with room for expansion, low and stable wood costs, and a thriving lumber and pellet manufacturing sector.
- This expansion will lead to a tighter log market, but growth will still exceed harvests (drain) in most states.
- With the pulp sector not expected to expand in the short-term, wood fiber demand will not change much.
- However, the surplus of small-diameter logs will create long-term opportunities to expand pulp and wood pellet sectors.