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WRI: Global wood fibre price indices moved up in Q3 2020

In the 3Q/20, the Global Hardwood Fiber Price Index (HFPI) was up by 1.6 per cent to $81.17/odmt, following a 16-year low in the previous quarter. The first q-o-q increase in almost two years was mainly driven by a weakening of the U.S. dollar against currencies in all WRQ countries except Russia. Currencies in Europe and Oceania strengthened between five to 10 per cent from the 2Q/20 to the 3Q/20.

In the Nordic countries, hardwood prices in the 3Q/20 jumped seven per cent q-o-q (in U.S. dollars) and were close to their highest levels in five years. Other countries that have seen price increases include Canada, Chile, France, and Germany. Comparing the wood fibre costs for the largest hardwood pulp producers worldwide shows that Japan, China, Finland, Australia, and Spain (in ranking order) had the highest hardwood fibre costs during this quarter.

The high fibre costs in Japan and China are mainly due to their pulp industry’s reliance on imported wood chips. Although import chip prices have declined by eight per cent in Japan and 20 per cent in China the past year, the wood costs they face are still substantially higher than in any other country in the world.

Softwood fibre costs have also gone up for the global pulp industry in the 3Q/20, predominantly in the Nordic countries, France, Australia, and New Zealand. However, there were a few exceptions, most notably in the Western U.S. and Germany, where softwood chip prices fell by 16 per cent and seven per cent from the 2Q/20, respectively. The price decline was mainly due to oversupply of residual chips from sawmills running at high operating rates.

The Global Softwood Fiber Price Index (SFPI) was up 1.4 per cent q-o-q in the 3Q/20, the first increase in almost two years. The rise was mainly due to the weakening US dollar. In fact, in the local currencies, softwood chips and pulp log prices fell in most markets in the 3Q/20, especially in Europe.

Are you interested in worldwide wood products market information? The Wood Resource Quarterly (WRQ) is a 70-page report established in 1988 and has subscribers in over 30 countries. The publication 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 latest international forest product market trends, please go to www.WoodPrices.com.