How does Fastmarkets determine the cost of pulpwood?

The cost of wood in Analytical Cornerstone is specifically for pulpwood used in the pulp and paper industry. Logs, e.g. for sawmills, have different (higher) cost due to quality, etc. For the price differential between logs and chips there are several arguments both ways. Chips could command a higher cost as they are ready to be processed at the pulp mill, unlike logs that need to be debarked and chipped which would add processing cost. Some mills have adjacent sawmills that lowers the logistics costs for chips. In general, we try to estimate a realistic market price for our cost items, which means that integrated producers (owning both sawmills and pulp mills) would be paying market prices for transactions between sawmill chips sold to their pulp business units.