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GRENADE(Scrap Monster): Softwood chips prices have trended downward in both the US and Canada during the first six months of 2012 , says North American Wood Fiber Review.

Current chip prices are the lowest they have been in over a year, but still well over the 25-year average.

High wood fiber inventories, plenty of sawmill chips and pulplogs, and maintenance shutdowns by a number of pulp mills were the main reasons wood chip prices fell by almost seven percent in the 2Q in the US Northwest.

British Columbia and Alberta declined the most because of lower market pulp prices. Chip prices in the US South, the Lake States and the Northeast experienced only minor price adjustments during the first half of this year.

Softwood chip prices fell in a number of key regions in North America during the 2Q/12 from the previous quarter.

The biggest declines were seen in the US North West, Lake States and Eastern Canada, while prices were unchanged or just slightly higher in the US South, US Northeast, British Columbia and Alberta, according to the North American Wood Fiber Review.