High demand, high prices for forest products amid pandemic

KALISPELL, Mont. (AP) — As the unpredictable nature of the coronavirus pandemic continues to affect every industry differently, sawlog prices in Montana are reaching record levels, said F.H. Stoltze Land and Resource Manager Paul McKenzie.

“The product demand has increased dramatically in general forest products,” he told the Flathead Beacon.

According to the University of Montana Bureau of Business and Economic Research sawlog report, Western Montana’s price per thousand board feet (MBF) for Douglas-fir sawlogs reached $407 in the third quarter, which stretches from July to September, compared to 2019’s Douglas-fir prices at $393 per MBF. Lodgepole pine sawlogs reached $409 per MBF this year compared to $393 last year.

McKenzie said the market was lagging earlier in the year before the uptick of the last few months.

“We don’t know exactly why the demand is there,” McKenzie said. “Part of it is because it’s in a commodity market and as the demand increases you see a corresponding increase in production.”

McKenzie speculates the nationwide timber production has been impacted by the pandemic and wildfires, creating a scarce supply and a hike in prices. But since Montana’s production has been uninterrupted throughout the pandemic, the state’s wood product industry is taking advantage of the high market prices. He also noted the influx of building in the valley.

McKenzie says Stoltze has been especially busy in the last three months and has increased production at its mill in Columbia Falls. Even though production has increased, it is still restrained by log supply with a limited access to timber.

“They don’t last long,” McKenzie said about the market prices. “Prices are highly volatile and we’re anticipating there will be an...