FO
FORESTOP · CHIMS · WOOD MARKETS DESK

KY HARDWOOD & WOOD-PRODUCT MARKETS

REP-01 · TABLOID 11×17 · LANDSCAPE
DOSSIER ky_wood_markets_forest_prod_2026-05-01
LANES L1·L2·L3·L4·L5 · CCE B+ · SPR-P 76
2026-05-06 · KENTUCKY EDITION BUILDER MODE · TIER A CCE B+ · 5-LANE SYNTHESIS L1 Stumpage L2 Mills L3 Stave L4 Pulp/Paper L5 Trade

White-oak crunch, mill attrition, and a $148M export book that just contracted 18%.

Kentucky's hardwood economy is structurally healthy — net forest growth still beats removal at +0.9% CAGR, and 62.4 billion bf of standing inventory underwrites a $117M trade surplus. But the pressure points are sharpening: 197 working sawmills, down 14 since 2018; stave-grade white-oak premiums 38% above #1 sawlog; Wickliffe pulp restart remains a 2026-Q3 watch item; and US-China policy shifts hit a 38% destination concentration directly on the chin.
L1 · STUMPAGE BAND

Statewide median Doyle stumpage moved on a four-quarter median range that confirmed the structural premium for stave-grade white oak and continued softness in pulpwood. Walnut veneer/select spans $2,800–$4,400 /MBF. Red oak #1 grade trades $580–$740. Pulpwood (mixed hardwood) remains in a $8–$14 /ton band, weighed down by Wickliffe idle and regional substitution to OCC.

STUMPAGE 2024 Q4$/MBF DOYLE
White Oak · stave1,450 → 2,100
Walnut · veneer2,800 → 4,400
Red Oak · #1580 → 740
Yellow-poplar280 → 340
Hard Maple · factory420 → 560
Pulpwood · /ton8 → 14
L2 · MILL CAPACITY

KDF Mill Directory registers 197 active sawmills and primary processors as of CY2024, vs 211 in 2018 — a 6.6% net loss concentrated in <5 MMBF/yr operations. The top of the pyramid is unchanged: Domtar Hawesville's 460 ktpy fluff line, Verso/Pixelle Wickliffe at ~800 ktpy idle pending restart, and a tier of grade-hardwood mills (Robinson, Cassady, Frank Miller, KFP Brodhead) covering the 10–30 MMBF range.

Stave-cooperage is its own ecosystem: Independent Stave Lebanon and Speyside (TN/KY supply) anchor downstream demand for the white-oak premium. The closure of mid-tier pallet mills (3–8 MMBF) has not erased capacity statewide, but it has thinned the buyer market for landowners outside trucking radius of the top-30.

L3 · STAVE & COOPERAGE

The white-oak crunch is the single most asymmetric story in KY wood. Bourbon premiumization since 2014 has lifted stave-grade demand ahead of the regenerating supply curve; Lane-3 modeling shows stave-log offtake is consuming 18% of merchantable WO removal versus a 9% historical baseline, while regenerating stands won't reach merchantable size for 30–60 years.

STAVE-LOG PREMIUMVS #1 SAWLOG
2018 Q4 premium+12%
2021 Q4 premium+24%
2024 Q4 premium+38%
WO supply elasticity-0.18
"Net forest growth still beats removal at +0.9% CAGR. The trees aren't the problem; the price signal is faster than the regeneration curve." — ForestOp CHIMS · Wood Markets Desk
FIG 1 · KY HARDWOOD EXPORT BOOK · CY2024 · USITC HTS-44n=$148M total · top destinations
L4 · PULP & PAPER

Pulp/paper in Kentucky is a 2-mill structural story. Domtar Hawesville's 460 ktpy fluff/pulp line is the steady-state employer; Verso/Pixelle Wickliffe's ~800 ktpy coated-paper restart, projected for 2026 Q3, would put 150 jobs back on payroll and lift pulpwood pricing 12–18% in a 60-mile radius.

The downside scenario — restart slip past 2027 — keeps a generation of mid-stem mixed-hardwood without a buyer and slows the Sec. 7 mitigation calculus on rotation harvest in DBNF stewardship contracts.

L5 · TRADE FLOW
HTSDescriptionEXPORT $MYoY
4407Lumber148−18.4%
4408Veneer31−9.6%
4403Logs (raw)22−24.0%
4409Mldgs/Flooring14+3.1%
4416Casks/staves9+11.7%

CN absorbs 38% of the export book — concentration risk on tariff & phyto changes. VN at 14% is rising as a pass-through to CN. CA is the steady third at 11%, almost entirely 4407 lumber to remanufacturers.

CHIMS RECOMMENDATION

Three actions, FY26.

Stave-log stewardship
30k ac
Wickliffe restart watch
Q3-26
Export diversification
CN→IN/MX
Mid-mill rescue line
$8M

CHIMS will auto-flag any KDF / DBNF stewardship contract that does not bind a stave-grade reserve clause; export books concentrated >30% on a single destination will trigger a Watch alert.

Sources. USDA-FS TPO 2018–2024 · KDF Mill Directory CY2024 · USITC HTS-44 trade tables CY2018–2024 · KY Univ Forestry stumpage band (Doyle) · ForestOp CHIMS dossier ky_wood_markets_forest_prod_2026-05-01. Method. 5-lane synthesis with cross-platform validation. Confidence band: stumpage CCE A; mill counts CCE A−; trade CCE B+. Uncertainty. 4408 veneer line subject to 4407+4408 reclassification at port; small-mill capacity self-reported.