Wood costs for the world’s pulp industry dropWood fibre costs for the world’s pulp mills were down again in the 2Q/2012. Prices for wood chips and pulp logs in both local currencies and in US dollars fell in most of the 17 regions tracked by the Wood Resource Quarterly.
Uncertainty in demand for pulp, lower pulp and paper prices, reduced market pulp production and a healthy supply of sawmill residuals were all factors that put downward pressure on wood fibre prices this spring and early summer. The Softwood Wood Fibre Price Index (SFPI) fell by 4.1 percent from the 1Q/12 to $100.54 per oven-dry ton (odmt). This was the biggest quarter-to-quarter drop since 2008.
The biggest price declines for hardwood fibre from the 1Q/12 to 2Q/12 occurred in Brazil, the US Northwest, Australia and Eastern Canada. Hardwood fibre prices have fallen even more than softwood fibre prices this year. The Hardwood Wood Fibre Price Index (HFPI) was down 4.4 percent to $104.88/odmt from the previous quarter. The HFPI has now fallen for three consecutive quarters since the all-time high in the 3Q/11, and in the 2Q/12 was at the lowest level in two years.
Source: Wood Resources International LLC, www.woodprices.com
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