Harvest reductions push lumber prices up

The current escalation in lumber prices is a direct result of continued timber harvest reductions caused by preservationist inspired lawsuits and injunctions, Western Wood Products Association president Robert H. Hunt maintains.

"Failure to resolve the gridlock on federal forests, coupled with increased demand for wood products has created a double-whammy that is affecting American consumers as the economy is beginning to improve," he said. "We're seeing what happens when you reject multiple use principles for managing timber and lock up forests in response to preservationists' lawsuits."

Hunt said lumber prices continue to rise as a result of the imbalance in supply and demand. According to WWPA s[atistics, average Douglas fir lumber prices in January climbed to a record $396 per thousand board feet, up $17 from December. In January 1992, the Douglas fir average was $301 per thousand feet.

Other western species have seen similar increases. Ponderosa pine price averages increased by l0Vo between December and January.

"The bill for setting aside millions of acres of timber is going to end up in the pockets of consumers, as they will be forced o pay higher prices for all end use products made from lumber." Hunt said.

Because of timber supply problems, westem lumber mills have been unable to take advantage of improved demand. ln 1992, tueled by an 18.59o advance in housing starts, U.S. lumber demand increased by an estimated 7%. Shipments from western mills during the year, meanwhile, were down by more than zqo. Lumber demand in 1993 should continue to grow, but output from westem mills is forecast to decline once again. Lumber shipments from Canada and the South are anticipated to increase this year, but cannot fully make up for the reductions in western lumber, as western mills supply neuly 4O9o of the lumber used in the U.S. annually. Even with the increase in lumber prices, on an inflation adjusted basis they still remain behind historic highs. The previous record high for Douglas fir prices was $327, set in 1979. If inflation were added, the sane price at the end ot L992 would be $617, or $238 more than today's actual market price.

Hunt said the volatility in lumber prices could be eased with action by the federal government. "The best solution is to moderate federal policies and reduce the legal mish-mash which has slowed federal timber sales in the West to a trickle. The Clinton Administration' s proposed timber summit is an important first step. But it must include decisions that mesh the economic shelter needs of Americans with tle nation's conservation needs," he said.