Pulpwood prices to remain low
A new report predicts that over the next ten years, consumption of pulpwood will continue its shift from North America and Western Europe to Asia and Latin America.
This shift will continue to keep prices low and impact species mix according to the 2012 World Pulpwood Study, released today by RISI.
“For the last 15 years we have seen steady trends in the market. Real prices for pulpwood have been tracking downward on a global-weighted basis, while the world’s pulpwood supply potential has been rapidly expanding. As this trend continues, it is likely that any price gains will be mixed as some regions are expanding pulp and paper capacity, and others are closing due to narrowing profit margins,” said Peter Barynin, Principle Timber Economist at RISI.
“We’re also anticipating, that as global demand for pulp accelerates and shifts towards other regions, changes in species mix and desired log grades, will follow,” continued Barynin.
RISI’s 2012 World Pulpwood Study provides a comprehensive outlook and analysis of primary pulpwood markets and their shifts towards developing regions.
The 2012 World Pulpwood Study answers:
• How resources will be allocated to accommodate accelerated global demand for pulp
• What record pulpwood demand will mean for fiber prices, investment/divestment in pulp, and international trade of wood fiber
• How the vast areas of high-yield plantation forests in South America and Asia will satisfy announced capacity investment and production targets for pulp
• Which countries are most exposed to industry restructuring and consolidation
• How trade of wood fiber, pulp and paper will adjust to regional costs and market developments
Click here for more information on the 2012 World Pulpwood Study.