Wood fiber costs for pulp mills worldwide increased for the fourth consecutive quarter in the 4Q/09. During 2009, the Hardwood Wood Fiber Price Index (HFPI) moved up 15.4%, while the Softwood Wood Fiber Price Index (SFPI) was up 10.5%, according to the Wood Resource Quarterly (WRQ), Seattle, Wash., USA.

Pulp markets have been remarkably strong during 2009, despite the global financial crisis. From April through December, the softwood market pulp price (NBSK) jumped 45%. Strong pulp markets and a tight wood fiber supply pushed wood fiber costs upward last year. The WRQ Global Wood Fiber Price Indices (both softwood and hardwood) have gone up for four consecutive quarters.

The HFPI reached $106.19/odmt in the 4Q, which was up 7% from the previous quarter. It increased 15.4% during 2009, which was the third highest level since the launching of the Index in 1988. The biggest price increases in U.S. dollar terms during the 4Q occurred in Germany, Finland, Spain, and Australia. Those four countries also had the highest delivered wood costs of all countries tracked by WRQ. Prices in both Spain and Australia were close to their all-time highs.

The SFPI also went up last quarter, increasing 5.6% to $98.34/odmt, mainly as a result of higher wood fiber costs in Sweden, Finland, the U.S., Spain, and Chile. The SFPI is now $7.85/odmt lower than the HFPI, which is the biggest difference ever recorded. Just three years ago the circumstances were reversed, the SFPI being more than $10/odmt higher than the HFPI. Historically, softwood fiber costs have always been higher than hardwood fiber costs, but 2009 was a trend breaker, WRQ says.

Higher costs for Eucalyptus logs, reduced fiber consumption in regions with high softwood fiber costs, and exchange rate adjustments were all factors that transformed the global wood fiber market in 2009. More information is available online.

TAPPI
http://www.tappi.org/