Thoughts about last week

In conversations late last week with customers who are larger distributors and companies who are serving the "Big Box" stores, it is fairly certain that we have had a slight trend downward again in business activity and orders. This is going to be a real paradox where we have reduced supply and reduced demand in relative lock step with one another. It certainly can be argued that supply is dropping faster in the Mississippi / Ohio Valley regions than in the East and the Northeast. It may well be the the supply in this region is dropping faster than the demand!

Domestic demand continues to be somewhat soft while export demand increases. This may well be a combination of the drop in the value of the dollar as well as a recognized threat to the Europeans of the possible further reduced supply due to bad weather associated with winter.

I frankly had expected activity to increase throughout November before tailing off once again in early December in anticipation of year end inventories and the holidays. If you have a different perspective on the market dynamics or what is going on, please feel free to offer a conflicting view.

Ethanol Refinery Turns Wood Chips Into Fuel

Ethanol Refinery Turns Wood Chips Into Fuel: "A Pennsylvania facility can produce 100 million gallons of cellulosic fuel annually, and the company wants to license the technology to others."

This is an interesting article worth a read. For those industries who are not currently recycling their own sawdust and end cuts, etc., through their own waste fired boiler, this may(?) be a better option than a contribution to the paper industry or fiberboard products.

It is definitely worth a discussion. Check and see for yourself.