November 2010
Over The Wire Tissue Edition
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Wood Fiber Costs Down in Second Quarter

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Both the softwood and hardwood wood fiber price indices (SFPI and HFPI) fell in the second quarter for the first time since early 2009, according to the Wood Resource Quarterly (WRQ), Seattle, Wash., USA.

Wood fiber cost, which accounts for the largest cost component in wood pulp manufacturing, declined for many pulp producers worldwide in the second quarter. Hardwood fiber prices (in U.S. dollar terms) fell in the U.S., Australia, and most European countries, bringing the Hardwood Wood Fiber Price Index (HFPI) down 2.3% from the previous quarter to $103.37/odmt.

Meanwhile, the Softwood Wood Fiber Price Index (SFPI) was $98.29/odmt, which was down 1.2% from the previous quarter. Softwood fiber prices fell the most in the U.S., Eastern Canada, Germany, Spain, and the Nordic countries.

Declining wood fiber indices were mostly the result of a strengthening U.S. dollar against other currencies in the second quarter. In the local currencies, prices of both wood chips and pulpwood actually increased in most of the 17 regions the WRQ tracks.



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