Economic Uncertainty Continues to Negatively Impact North Carolina Timber Pricing

The Wilkes Journal Patriot on Monday (8-7-23) published an article written by Dr. Robert Barton, Associate Dean of Extension at North Carolina State University, in which he discusses the status of the state’s timber industry.

Barton says that as of the end of July, North Carolina timber markets continued to be impacted by uncertainty in the economy. Compared to a year ago, Q2 standing timber prices were down across all product classes, with the exception of pine sawtimber which increased a modest 2%.

The most significant year-over-year declines in timber prices occurred with pulpwood, with pine and hardwood pulpwood prices falling 27% and 36%, respectively. While oak and mixed hardwood sawtimber prices declined by 16% and 9%, respectively.

Worsening market conditions in pulp and paper brought about several mills closures across the US, including the Pactive Evergreen paper mill in Canton, North Carolina. However, even though standing timber prices in the state are generally down on a year-over-year basis, state-wide average standing timber prices are up for pine and hardwood sawtimber from Q1 to Q2.