Softwood, Hardwood Fiber Prices Fall as Pulp Markets Weaken, Dollar Strengthens
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Weaker pulp markets and a strengthening U.S. dollar have resulted in lower wood fiber prices in U.S. dollar terms in most of the major markets, according to Wood Resources Quarterly (WRQ), Seattle, Wash., USA. During the past two years, hardwood fiber prices have fallen more than softwood fiber prices.
The Hardwood Wood Fiber Price Index (HFPI) has fallen every quarter for two years with one exception. In the 2Q/13, the HFPI was $100.46, which was 3.1% lower than the previous quarter and 14.8% below the all-time high in the 3Q/11. The biggest price declines since the 1Q/13 have occurred in France, Japan, Australia, Russia, and Germany, WRQ says.
The Softwood Wood Fiber Price Index (SFPI) was also down in the 2Q/13, WRQ continues, but the decline over the past two years has been less dramatic than that of HFPI. In the 2Q/13, the SFPI was $97.75, down 2.2% from 1Q/13, with the biggest price reductions seen in Norway, Japan, France, and Australia.
Higher demand for pulp added upward pressure on prices of both softwood pulp (NBSK—northern bleached softwood kraft) and hardwood pulp (BHK—bleached hardwood kraft) during the 2Q/13, with the biggest price increases occurring in the U.S. Prices have gone up faster for NBSK, with the price premium over BHK averaging $40/ton in the 2Q/13, compared with $30/ton in the 1Q/13, according to WRQ.
In the global biomass market, pellet prices in Germany have increased substantially the past year from an average of EUR 227/metric ton in the 2Q/12 to EUR 267/metric ton in the 2Q/13. In the U.S. South, pellet export volumes to Europe resumed their double-digit growth after a brief pause in the fourth quarter of 2012.
   
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