Financial Reports & Markets
Wood fibre costs for pulp manufacturing trended upward worldwide: WRI
March 6, 2023 By Wood Resources International, a ResourceWise Company
Prices for pulplogs and wood chips have gone up in practically all markets worldwide in the 3Q/22. The Hardwood Fiber Price Index (HFPI) has moved upward for over two years to reach $100.47/bdmt in the 3Q/22, 26 percent higher than its 15-year low in the 2Q/20 (see chart). The index, denoted in U.S. dollars, has increased over 10 percent in the past year despite a strengthening dollar against most other currencies in 2022.
Steady demand for paper products, record-high prices for market pulp, increased shipping costs, and a tightening supply of wood fibre have been the critical factors to the escalating of wood fibre costs. In local currencies, hardwood pulplogs have gone up the most in Europe and Latin America, ranging from 10 to 20 percent. In contrast, the price changes have been more modest in the U.S., Australia, and Japan (domestic).
Global softwood fibre prices have also risen over the past few years, with the Softwood Fiber Price Index (SFPI) increasing for nine consecutive quarters. In the 3Q/22, the SFPI was $101.63/bdmt, the highest level since early 2021. The biggest jumps in softwood fibre costs have occurred in Northwest U.S., Western Canada, Central Europe, and Latin America.
Wood Resource Quarterly has been digitized and is now available as an interactive online business intelligence platform, WoodMarket Prices (WMP). The pricing data service, established in 1988, has subscribers in over 30 countries. The WMP tracks prices for sawlog, pulpwood, lumber & pellets and reports on trade and wood market developments in most key regions worldwide. For more insights on the WMP platform, a unique and valuable tool for every company and organization that require updates on the latest developments of global forest products markets, please go to Global Wood Prices.
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