Hurricane Helene Aftermath Drives up Southern Pine Prices


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As a result, Florida, Georgia, North Carolina, and Tennessee all suffered significant damage to infrastructure; specifically transportation and power supply. There are three major sawmills in these areas; two West Fraser mills and one Canfor. One of the West Fraser mills, in Florida, was very recently curtailed.

There are also more than 10 medium-sized mills and a large number of smaller mills throughout these states. More than a week after Helene, much of these locations were still without power, not to mention inability to transport timber into the mill and lumber out. As a result, prices of Southern Yellow Pine started to rise immediately.

This is due to the ongoing customer habit of not stocking inventory, so any need for wood brought an increase in orders to producers. Naturally, demand flowed to Eastern S-P-F as customers sought value as well as availability. This, however, did not increase prices even while sales volumes rose.
In the week ending October 4, 2024, the price of benchmark softwood lumber item Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) was US$388 mfbm. This is down -$6, or -2%, from the previous week when it was $394, said weekly forest products industry price guide newsletter Madisonโ€™s Lumber Reporter. That weekโ€™s price is down -$16, or -4%, from one month ago when it was $404.

Hurricane Helene and the US East Coast port strike created urgency for Southern Yellow Pine, some of which spilled over into Eastern S-P-F. Prices of panels, Western S-P-F, and Hemlock/Fir were on either side of the previous weekโ€™s levels.
Madison’s Lumber Reporter
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KEY TAKE-AWAYS:

  • In the West players had heavy hearts and prayers for those affected by Hurricane Helene. As well, the East Coast port strike resulted in much handwringing, and the looming presidential election diverted attention.
  • Steady hand-to-mouth purchasing at the distribution level kept orders flowing to sawmills; resultant dimension prices remained around the previous weekโ€™s levels.
  • Buyers hoped for another round of corrections in four-inch; suppliers felt there wasnโ€™t much more downside potential.
  • Future availability of Eastern species was squeezed further by reduced supply in the US Southeast in the wake of Hurricane Helene.
  • Robust demand of ESPF was noted as the week wore on, with a hectic pace to inquiry by Friday.
  • The longshoremen strike affected dozens of ports along the Eastern seaboard, adding urgency.
  • Uncertainty surrounded the operation of many Southern Yellow Pine sawmills following the horrific flooding and resultant Hurricane damage in Florida, Georgia, North Carolina, and Tennessee.
  • A potential future logistical nightmare loomed due to washed out or completely destroyed roads over a vast swath of the US Southeast.
  • Cash wood availability of Southern Yellow Pine evaporated.
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