Wood Chip Supplies Diminish and Prices Soar in the Pacific Northwest

Labor union strikes and industry developments that have pinched the supply of conifer wood chips in the Pacific Northwest (PNW) now have a number of regional chip consumers on edge. Prices bottomed in 2020 in response to the pandemic, but they reversed course sharply in 3Q2021 and have been climbing ever higher since. Conifer chipmill (primary) and residual chip prices are now at a 10-year high in the region and are poised to go higher.