Bracing themselves for a tough fourth quarter and beyond, sawmills in the South began cutting production and shipping from inventory at the end of third quarter, according to data released by Forest2Market Inc.
Revenue from sawmill residuals remained flat and the average composite lumber price fell by nearly 25 percent. At the same time, log costs fell just under 5 percent. By the end of September, shipment volume for southern yellow pine lumber increased as mills reduced production levels. Shipments remained higher throughout October.