Prices for American Primary and Secondary Wood Products

¡¾2002.05.27¡¿

Demand, supply and price movements vary significantly between different species, quality grades, drying levels, and growing regions. Below, are listed the price changes of several widely used species during the past month. (Note that the following comments and data refer to 1000 Board Feet (MBF) of top-quality lumber, 1" thick. Imported lumber is quoted at dockside West Coast port of entry. Approximately $ 50.00 to $ 55.00 will have to be added for East Coast ports).

Hard Maple witnessed the steepest price decline in April. For instance, green Hard Maple in the Appalachian region dropped by more than 4 percent during the last month alone. Due to substantial price advances throughout most of 2001 Maple is now increasingly substituted by other less costly woods. Similar - but less pronounced - conditions exist for Walnut. On the other hand, Red Oak lumber was able to withstand the downward price pressure and prices advanced between one and two percent in April, depending on the region.

Generally, prices in the Southern United States are weaker than elsewhere in America. Furthermore, kiln dried lumber prices seem to suffer most under the current price erosion. As green lumber is in shorter supply, prices held up better recently (with the exception of green Hard Maple in the Appalachian region).

Bucking the generally sagging price trend of temperate species are a few sought-after tropical species. While the price of (kiln dried) Genuine Mahogany remained stable during the fist quarter of this year, it moved up by 1.3 percent in April. Compared to March 2001, prices are almost 8 percent higher and compared to six years ago the increase amounts to a staggering 42.6 percent. Green Mahogany and African Mahogany also saw their prices lift, albeit to a somewhat lesser extent.

S.American Mahogany
	KD	US$3560	US$45
	AD	US$3075	No Change
African Mahogany
	KD	US$2040	US$10

Temperate North American Species

Red Oak
Northern Region	KD	US$1610	No Change
	AD	US$1295	US$25
Southern Region	KD	US$1285	US$5
	AD	US$1000	US$20
Appalachians	KD	US$1483	US$8
	AD	US$1163	US$15

White Oak
Northern Region	KD	US$1205	No Change
	AD	US$795	US$10
Southern Region	KD	US$1170	US$70
	AD	US$815	US$0
Appalachians	KD	US$1215	US$5
	AD	US$918	US$5

Cherry
Appalachians	KD	US$3120	US$30
	AD	US$2450	US$25

Hard Maple
Northern Region	KD	US$2185	US$54
	AD	US$1800	US$25
Appalachians	KD	US$2015	US$5
	AD	US$1610	US$70

Soft Maple
Northern Region	KD	US$1395	US$15
	AD	US$1005	US$20
Appalachian	KD	US$1400	US$5
	AD	US$1070	US$20

Walnut
Appalachians	KD	US$2250	US$10
	AD	US$1690	No Change

Engineered Wooden Boards

As with lumber, the prices of most engineered wooden boards are lower than one year ago. However, looking only at the first quarter of this year, prices have firmed. The steepest year on year price decline applies to veneer (-1.7 percent) and particleboard (-1.9 percent), an exception is provided by MDF. This product is now 4.4 percent more expansive than in March 2001. This difference, however, is because of a steep price advance during he first half of 2001. Prices slipped in the second half of 2001 and have remained stable so far this year. Nevertheless, this recent weakness has not fully eradicated the previous price advances.

Looking at a six-year historic time path, engineered boards fared even worse than solid lumber products. None of the products monitored is priced more than 5.4 percent higher than in January of 1996. In fact, particleboard and MDF are some ten percent cheaper.

Finished and Semi-finished Wooden Products

On average, prices of finished and semi-finished wooden products were subject to less downward price pressure than their raw-material inputs. Indeed, most products being tracked saw prices go up so far this year and, in many instances, they also recorded higher prices than one year ago. Not surprisingly, prices of all products are higher than in January of 1996 (the date when the price movements began to be monitored by AKTRIN on behalf of ITTO.

Office desks recorded the steepest price advance. This applies both the long-term (6-years), medium term (1 year) and short-term (beginning of 2002). It seems that the price rises for this product has not yet come to an end. This is unexpected in light of still depressed business profits and the reluctance of corporations to make capital investments. An explanation may be found in the reduced supply of office furniture due to the many bankruptcies of office furniture companies. Also, the demand for home-office furniture remains strong. Other products with above average year-on-year price advances include headboards for beds and wooden mouldings. However, prices of both products have now stabilised.

Recent price movements for wooden doors rank at the low end of the inflation scale. In spite of a modest price recovery since the beginning of this year, wooden doors can now be obtained 1.1 percent below year-ago levels. The reasons for this fact are higher efficiencies in door manufacturing plants, as well as the ongoing substitution of solid wood with less expensive MDF. Other products standing out for falling prices include wooden frames for upholstered chairs and cabinets. Again, in an environment of slow business conditions - manufacturers have been lowering their prices by using less expensive materials, such as plywood and particleboard in lieu of solid wood.