Economic Feasibility Analyses 



3553 



east Texas mills undersold West Coast mills in all eastern markets studied; 

 moreover, the east Texas plywood mills received (fob mill) about $1 1 more per 

 thousand square feet (MSF) for '/z-inch, three-ply sheathing than did West Coast 

 mills (tables 28-6 and 28-7). 



Plywood mills throughout the South generally obtain fob mill prices that 

 enable them to meet delivered prices by east Texas mills, i.e., all the southern 

 mills in 1977 delivered plywood to market destinations at about the same price 

 (table 28-7 right-hand column). 



Table 28-6. — Price per MSF paid by retailers at eight locations for '/2-inch CDX 

 Douglas-fir three-ply sheathing plywood, based on average 1977 mill prices and Decem- 

 ber 1977 freight rates 



Rail freight Price paid 



Retail per CWT from Fob West Coast by retailer 



location Portland' Freight/MSF^ mill price-'- "* for sheathing 



-Dollars - 



Houston 2.63 40. 11 211 251 



Kansas City 2.39 36.45 21 1 247 



St. Louis 2.63 40.11 211 251 



Chicago 2.66 40.57 211 252 



Tampa 3.20 48.80 211 260 



Mobile 2.99 45.60 211 257 



Pittsburgh 3.16 48.19 211 259 



New York 3.20 48.80 211 260 



'85,000-lb, minimum per carload, rate on first four destinations and 75,000-lb minimum on last 

 four destinations. 



^Basedon 1,525 Ib/MSF 



^Average for 1977; from this price, the retailer got only a 2-percent cash discount for payment in 

 10 days. 



H- and 5-ply sheathing sells fob mill at a price about $9 higher than these values for 3-ply. 



