Global Demand, Prices for Wood Fiber Continue Rising in 3Q/13

Sawlog prices were higher in practically all of the 20 regions worldwide as tracked by the Wood Resource Quarterly (WRQ), Seattle, Wash., USA, each quarter. The only exceptions were in Canada, Western U.S., Finland, and Brazil, where prices were slightly lower than in the previous quarter.

The reduced prices in North America resulted in a 0.6% drop in the Global Sawlog Price Index (GSPI) to $85.94/cubic meter, the first decline since the 2Q/12. Global trade of logs may reach just over 76 million cubic meters in 2013, which would be 6% higher than in 2012 but slightly lower than in 2011.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Softwood fiber prices were up in most countries worldwide with just a few exceptions including Sweden, Brazil, and Oceania. The largest price increases were seen in the U.S. South, Germany, France, and Spain.

The Softwood Wood Fiber Price Index (SFPI) edged up to $97.94/odmt in the 3Q/13. This was $0.19/odmt higher than in the previous quarter, but $2.11/odmt below the 3Q/12 price.

The Hardwood Wood 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 from the last quarter occurred in Asia and Latin America.

Wood fiber costs for the pulp sector in Europe were generally higher in the 3Q/13 compared with the previous quarter, both in euro and U.S. dollar terms.

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand for pulp has picked up in all regions of the world with the biggest increases in Eastern Europe, Japan, and North America. During the past five months, NBSK (northern bleached softwood kraft) pulp prices increased 5%, while BHK pulp fell 6%. Historically, it has been very unusual for these pulp prices to move in opposite directions.

Pellet export volumes from North America to Europe continued to rise during the 2Q/13, representing steady growth for the past seven quarters. In the U.S. South, pellet export volumes in the 2Q/13 increased 16% from the previous quarter to just over 700,000 tons.

As often has been the case, pellet prices in Germany were on the move upwards in the fall after a quiet summer.

More information is available online.