There already has been a huge run up in prices for wood chips due to several factors including demand from Asia and a lack of residuals from PNW mills due to lower domestic lumber production. If the Russians lower their tariffs on logs, we could see a weakening of log prices as Asian demand picks up logs closer to home.

Domestic demand is up a bit, but still far from what it was. Besides the center beams going back into service, another example of things slowly improving for the forest products sector is in LA Grande, Or where Boise Cascade is about to restart its sawmill on the IN&P. The mill has been down for a few years, and will slowly come back on line.