the HFPI and the SFPI price indices fell in the 1Q/16 with generally
lower prices in Europe, Canada and Russia partly because of weakening
currencies against the US Dollar, according to the Wood Resource
Quarterly. For many countries, current prices are at their lowest levels
in almost ten years.
Global Timber and Wood Products Market Update
- a news brief from Wood Resources International LLC
The global wood fiber prices indices continued down in the 1Q/16
with the softwood price index being at its lowest level since 2006,
reports the Wood Resource Quarterly
Wood costs for the pulp industry have
been falling steadily worldwide for almost five years with hardwood
fiber prices declining the most, according to the Wood Resource
Quarterly (WRQ). The Hardwood Wood Fiber Price Index (HFPI)
by 0.6% in the 1Q/16 mainly because of lower prices for hardwood
pulplogs in Russia, Eastern Canada, France and Germany. The HFPI has
been on a consistent decline the past few years with the current index
being 29% lower than its record-high in 2011. The biggest price drops
since the peak of the HFPI index have mainly occurred in countries with
fast-growing plantations such as Chile, Brazil, Australia and Indonesia.
The price declines have entirely been the result of a stronger US
dollar, with hardwood log costs in the local currencies going up over
25% in countries such as Brazil, Chile, Indonesia and Russia.
Softwood fiber prices fell in a number of countries throughout the world
in both local currencies and in US dollar terms in the 1Q/16, reports
the WRQ (www.woodprices.com) in its latest issue. The downward price
trend that started in Europe in early 2014 has continued, although in
some markets, prices are starting to level out and the bottom might have
been reached. The biggest price declines quarter-over-quarter occurred
in Russia, Canada, France and New Zealand.
The Softwood Wood Fiber Price Index (SFPI)
, dropped one
percent in the 1Q/16 from the previous quarter, which was its lowest
level since the 1Q/06. The only region that has experienced an increase
in wood fiber costs the past few years is the US South, where average
softwood pulplog prices in the 1Q/16 were 21% higher than in 2012.
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. The price is based on current quarter average
prices, and country/regional wood fiber consumption data. The global
average price for softwood and hardwood is calculated in nominal US$ per
oven-dried metric ton (odmt) of wood fiber.
Global pulpwood and timber market reporting is included in the
52-page quarterly publication Wood Resource Quarterly (WRQ). The report,
which was established in 1988 and has subscribers in over 30 countries,
tracks sawlog, pulpwood, lumber and pellet prices, trade and market
developments in most key regions around the world.
To subscribe to the WRQ, please go to www.woodprices.com
Wood Resources International LLC
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