Hardwood Fiber Prices Climb Past Softwood
Dec. 2, 2009 - Hardwood fiber costs for the global pulp industry
have risen faster than softwood fiber costs in 2009, according to Wood Resources International (WRI).
Over the past 20 years, the Global Softwood Fiber Price Index (SFPI) has typically ranged between US$5-10/odmt higher
than the Global Hardwood Fiber Price Index (HFPI). This relationship changed this year
because hardwood fiber costs have increased more than softwood costs, WRI said.
The Global Wood Fiber Indices are weighted global average delivered wood fiber prices
for the pulp industry in the regions tracked by WRI's publication Wood Resource Quarterly.
The regions included in the Indices together account for 85-90% of the world’s woodbased
pulp production capacity. The prices are based on the quarterly average prices, and
country/regional wood fiber consumption data.
The report notes that the HFPI was up $4.23/odmt, reaching US$99.15/odmt in the 3Q/09 as compared to the
2Q. This was mainly a result of higher wood costs in Brazil, Australia, Russia and
Sweden. The global average hardwood fiber price is now over six dollars higher as that of
softwood fiber, a historical first, WRI explained.
The SFPI jumped three dollars per odmt in the 3Q to US$93.12/odmt. Much of the
increase occurred because the US dollar weakened against all 14 currencies in the
countries included in the Index. The biggest increases were seen in Germany, Brazil,
New Zealand and Australia, WRI said.
The SFPI Index, which predominantly includes countries with natural conifer species in
the Northern Hemisphere, and the HFPI Index, which largely consists of wood fiber
prices in non-conifer plantation forests, are calculated in nominal US dollars per ovendried
metric ton (odmt) of wood fiber, WRI added.
During the past two decades, global wood fiber prices declined during most of the 1990’s
and early 2000, and then climbed from 2002 to 2008. Wood costs reached record levels in early 2008, but then fell rapidly for 12
months until the recent increase in early 2009, according to the quarterly report
SOURCE: Wood Resources International LLC