Wood Fiber Prices Fall in the U.S. Midwest

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Forest2Market, Charlotte, N.C., USA, reports that it has begun providing its Lake States subscribers with its Forest2Mill Delivered Price Benchmark, the first transaction-based market price report available in the region. According to the report, the Midwest delivered cost of total wood fiber (pulpwood and chips) was lower at the end of 4Q/2012 for all species.

Aspen fell 2.8% over the course of the quarter, moving from $49.10 per ton in October to $48.89 per ton in November, and then to $47.73 per ton in December. The delivered cost of hardwood fiber started the quarter at $51.51 per ton, fell to a quarterly low of $50.88 per ton in November, and then recovered nearly all of that loss in December, ending at $51.31 per ton. Softwood total fiber remained steady in October ($52.78 per ton) and November ($52.77 per ton), but then fell to $52.04 per ton in December, a drop of 1.4%. All prices are in chip-equivalent tons (pulpwood less bark and accounting for fiber loss).

Peter Coutu, manager of Forest2Market’s Midwest and Northeast office, worked with industry leaders in the Midwest throughout 4Q/2012 to develop a service that would meet the needs of consumers of wood fiber in the region. "It was great collaborating with them, and we look forward to expanding our relationships in the future as we improve and add to our Midwest product offerings."

Coutu added that "in this first report, the data we supplied to our subscribers point to significant opportunities for adding value to the supply chain. The purpose of all Forest2Market products is to provide our customers with the market information they need to make better decisions and improve the performance of their businesses. We’re confident that bringing the benchmark service that has been so successful in the South and the Pacific Northwest to the Midwest will bring a level of transparency to the market that will benefit all."

Coutu is currently working with industry leaders to develop a similar product in the Northeast.