Wood Demand: Despite low January receipts, pine sawtimber demand increased overall by 2.7% South-wide relative to Q4 2010. Sawmill demand increased 1.3% while plywood plants increased receipts 9.2%. Year-over-year from Q1 2010, pine sawtimber volumes increased 9.8%, recording the highest volumes since Q4 2008. Pine pulpwood and direct chip consumption fell 2.3% for the quarter, though demand increased at OSB plants. South-wide effective sawmill utilization was 71%, while effective capacity utilization at pulp/paper mills fell to 81% from 83% in Q4 2010.
Bioenergy: US-wide, current wood consumption associated with bioenergy projects exceeds 40 million green tons per year. Of the 451 operating and announced wood-using projects (pellet, cellulosic ethanol and electricity/cogeneration), 189 are operational, 35 are under construction and 227 have been proposed. Electricity projects are projected to consume 64% of the wood demand from bioenergy projects by 2021.
Timber REITs: Public timber REITs returned 22.05% as of April 26, 2011 as measured by the Forisk Timber REIT (FTR) Index, compared with 7.12% for the S&P 500. Including Weyerhaeuser, timber REITs comprise 5.82% of total public REIT capitalization.
This content may not be used or reproduced in any manner whatsoever, in part or in whole, without written permission of LANDTHINK. Use of this content without permission is a violation of federal copyright law. The articles, posts, comments, opinions and information provided by LANDTHINK are for informational and research purposes only and DOES NOT substitute or coincide with the advice of an attorney, accountant, real estate broker or any other licensed real estate professional. LANDTHINK strongly advises visitors and readers to seek their own professional guidance and advice related to buying, investing in or selling real estate.