prices for globally traded hardwood chips fell to a record low in May 2016,
while softwood chip prices reached the highest level in seven months, according
to the latest FOEX Chip Price Indexes
Global trade of hardwood
chips have trended upward for six years and totaled almost 24 million tons in
2015. By far, the two largest wood chip-importing markets are Japan and China,
both countries with limited forest resources to supply the pulp industry with
sufficient wood fiber.
The general price trend for hardwood chip traded overseas have been downward
since late 2011 when the FOEX price index (PIX-HCG) reached a record high of
almost $207/odmt. In May of this year this Index was $167.29, representing a
19.1% decline in 4 ½ years. Some of the biggest price declines the past 12
months have been for hardwood chips shipped from Australia to China, from South
Africa to Japan, and from Uruguay to Portugal.
The FOEX softwood chip price index (PIX-SCG) has also fallen from a peak almost
five years ago, but the price decline has been less dramatic than that of
hardwood chips. During 2016, the SCG index has actually increased to reach
$165.55/odmt in May, which was the highest level in seven months. The major
price increase so far this year has been for softwood chips exported from the
US to Turkey. A majority of global softwood chip trade is in Europe, as opposed
to the hardwood chip trade, which is concentrated to Asia.
About the PIX wood chip prices indices
FOEX and Wood Resources International (WRI) have cooperatively launched two
wood chip price indices, the Softwood Chip Global (SCG) and Hardwood Chip
Global (HCG), both part of the PIX index family of FOEX. The Indices represent
prices (CIF) for wood chips that are traded globally overseas for the manufacturing
of wood pulp and wood-based panels. The Indices are reported monthly the third
Tuesday of the month on the FOEX web site (www.foex.fi). If you are interested in
participating as a data provider, subscribing to the index histories (data
available from January 2010), or are considering using the Indices
commercially, please contact email@example.com.
About FOEX Indexes Ltd
FOEX Indexes Ltd is a private, independent company which specializes in
providing audited, trade-mark registered price indices for pulp, paper,
recovered paper, biomass and wood chips. Financial institutions use the FOEX
Indices as benchmarks when setting prices for SWAP-deals and other financial
instruments hedging against product price risks.
The PIX Indices are trademark registered by FOEX Indexes Ltd. Any commercial
use of the indices is subject to permission from FOEX and the terms outlined in
the License Agreement between the user/-s and FOEX. If you are considering
commercial use of PIX-SCG or PIX-HCG, please do not hesitate to contact FOEX
for further guidance.
About Wood Resources International LLC
Wood Resources International LLC, an internationally recognized forest
industry-consulting firm, publishes two quarterly timber and pulpwood price
reports and has subscribers in over 30 countries. The Wood Resource Quarterly,
established in 1988, is a 52-page quarterly market report which includes global
prices and trade for sawlogs, pulpwood, wood chips, lumber and pellets, as well
as market commentary about developments in the global timber, biomass and
forest industries. If you have any questions regarding our subscription
services, please contact Hakan Ekstrom (firstname.lastname@example.org) or visit our website www.woodprices.com
The commercial aspect of the Forestry South Africa (FSA) website, as well as the commercial side of the FSA Newsletter, is managed and run by Fevertree Media (Pty) Ltd which is a separately run entity to the non-profit organisation Forestry South Africa.