Wood Fiber Prices On Downward Trend Over the Past Two Years
Wood fiber costs, which account for about 60% of the production costs in pulp production, have been in steady decline in many parts of the world for the past two years.
Jan. 14, 2014 - The wood costs for the global pulp industry have trended downward in a
majority of the pulp-producing regions of the world the past two years, according to the
Wood Resource Quarterly (WRQ). This has mainly been the result of lower prices for
market pulp but also because of reduced pulp production and increased supply of wood
fiber in some regional markets.
As the costs of energy, labor and chemicals have changed relatively less than those of
wood fiber the past year, the wood cost as a percentage of the production costs when
manufacturing pulp have fallen. In the 2Q/13, wood fiber costs accounted for just over
59% of the production costs on a worldwide basis, down from approximately 63% in the
2Q/12 but up from 51% in 2006, according to Fisher International.
Although wood fiber prices have trended downward for most of the past few years,
softwood fiber prices were actually up from the previous quarter in the 3Q/13 in most
countries worldwide with just a few exceptions including Sweden, Brazil, and Australia.
The largest price increases were seen in the US South, Germany, France and Spain.
The Softwood Fiber Price Index (SFPI) edged up to $97.94/odmt in the 3Q/13, as
reported by the WRQ. This was $0.19/odmt higher than in the
previous quarter but over 10% lower than two years ago.
The Hardwood Fiber Price Index (HFPI) fell for the fourth consecutive quarter to
$98.15/odmt in the 3Q/13. This was down 2.3 % from the previous quarter and the lowest
level since the 2Q/09. The biggest price declines have been in Asia and Latin America,
while wood costs in Europe, Russia and North America have continued to be relatively
stable the past year. In just two years, the HFPI has fallen by almost 17%.
Note: The Global Wood Fiber Price Index is a weighted average of delivered wood fiber prices for the pulp
industry in all regions tracked by the publication Wood Resource Quarterly. These regions together
account for 85-90% of the world’s wood-based pulp production capacity.
Wood Resources International LLC publishes the Wood Resource Quarterly report, which tracks sawlog, pulpwood, lumber and pellet prices and market developments in most key regions around the world. For further information visit: www.woodprices.com
SOURCE: Wood Resources International LLC