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how is the pulp wood market in the lake states

Started by snowstorm, February 27, 2015, 09:28:13 PM

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snowstorm

friend of mine works for the big paper mills. he was out in the lakes states last week. says there mills dont have much wood piled down and they are getting concerned. with spring coming and not enought wood. i told him to raise the price. in maine news some of the equipment in the verso bucksport mill has been sold. 

1270d

Quote from: snowstorm on February 27, 2015, 09:28:13 PM
friend of mine works for the big paper mills. he was out in the lakes states last week. says there mills dont have much wood piled down and they are getting concerned. with spring coming and not enought wood. i told him to raise the price.

That would be nice.

chevytaHOE5674

Mills are hurting for wood as we had a wet summer and fall last year which ment they went into winter without much inventory. They are hungry and fighting for every stick they can get but so far no price real increases...

snowstorm

there is talk of the mills buying new ctl gear and leasing it to contractors. anyone hear anything like that? the machines they are looking at are yellow and black

BHC

JD Irving has been, they had 3 or 4 different meeting around this winter, they are pushing the ponnse CTL to thin the clear cuts from the 70's. I was on a tour last Sept of there new mill and their new CTL equipment, i was impressed. I have talked to the forester a bit about it. I did not make it to any of the meetings though. I think there is some good opportunity there for the right guys, but would guess that most of the cutting will be back in enough so you would be staying in the woods. if any one is interested i can get a e-mail /name and maybe a phone number.-Steve
84 C5D Tree Farmer, 78 S8 International, Thompson Band Mill, M14 Foyley Belsaw

Corley5

They can't get enough but they won't pay more either.  Most of my hardwood pulp goes as 100" firewood.
Burnt Gunpowder is the Smell Of Freedom

1270d

I heard you would be obligated to work their ground, and couldn't cut for anyone else. 

snowstorm

they dont own any land do they? the wood would have to go to them

Firewoodjoe

PCA gets a good batch then seems to loose a few rows. They have there satilite yard 3/4 full I would say. But yes want all they can get do to breK up coming

1270d

they don't own any ground that I know of, but can still bid on sales.  I don't know the details very well, but am curious how it will work.

snowstorm

Quote from: BHC on February 28, 2015, 07:44:28 AM
JD Irving has been, they had 3 or 4 different meeting around this winter, they are pushing the ponnse CTL to thin the clear cuts from the 70's. I was on a tour last Sept of there new mill and their new CTL equipment, i was impressed. I have talked to the forester a bit about it. I did not make it to any of the meetings though. I think there is some good opportunity there for the right guys, but would guess that most of the cutting will be back in enough so you would be staying in the woods. if any one is interested i can get a e-mail /name and maybe a phone number.-Steve
they have to run double shifts dont they?

Southside

Quote from: BHC on February 28, 2015, 07:44:28 AM
JD Irving has been, they had 3 or 4 different meeting around this winter, they are pushing the ponnse CTL to thin the clear cuts from the 70's. I was on a tour last Sept of there new mill and their new CTL equipment, i was impressed. I have talked to the forester a bit about it. I did not make it to any of the meetings though. I think there is some good opportunity there for the right guys, but would guess that most of the cutting will be back in enough so you would be staying in the woods. if any one is interested i can get a e-mail /name and maybe a phone number.-Steve

Irving has gone this route several times over the past 20 years, same circle each and every time.  I would talk with some of the guys that work west of Ashland / Portage who have done this and see how well it worked out.  I know one contractor who ended up running the same equipment as an employee after Irving took it back, and it was not for lack of effort on his part. 
Franklin buncher and skidder
JD Processor
Woodmizer LT Super 70 and LT35 sawmill, KD250 kiln, BMS 250 sharpener and setter
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Woodmaster 725 and 4000 planner and moulder
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White Oak Meadows

Ron Scott

A lot is going out as firewood unless there is a real price increase.
~Ron

BHC

 I know a lot of crews up there run 2 shifts anyway, or very long days and think they always have. I always did when working away from home.
I don't know many working for Irving over the last few years, but they have the wood and the mills so some how some way they need to get the wood. With the spruce bud worm fast approaching, i think many are pretty worried about losing the plantations that they planted, and thinned/ spaced, and sprayed with herbicide, they got a lot of money invested in what they have growing.
I will say my impression of Irving has gotten better over the last few years. there are very few large landowners planning for the future of the woods, Irving is one of them, from the plantations, to there roads, to the mill. Down here it is mostly investment company's, that own the ground and the woods is managed for the most $ now, some have been managed for less than 10% merchantable timber, over so many years (4) 3 and 4 townships at a time, and that was from a forester.
I guess long story short, if i was looking to invest in CTL equipment, with some job security i would not be afraid to sign up with Irving these days. We all know how the logging business is with there ups and downs, and i think this would/ could take some of this out of it, we all know the markets up and downs and with Spruce bud worm, and pulp mills in Millinocket, and Bucksport gone, it would give some security with being able to not only have wood to cut, but a market to send it to. What other landowner can do that for you? the list is pretty small around here.
Is it will it be all rose's i am sure it will not be, but nothing is. How low do you think the price of fir/spruce pulp will go, here once spruce bud worm dose hit, and the clear cuts start? Do you think a independent logger going to even be able to sell a load? Same goes for stud wood to some extent. I don't think it will be the same as the 70's the pulp mills are not here, there is a different world market, and demand for paper.
84 C5D Tree Farmer, 78 S8 International, Thompson Band Mill, M14 Foyley Belsaw

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