Global Hardwood Fiber Price Index in 3Q/14 touched lowest levels since 2009

VANCOUVER (Scrap Monster): The wood fiber costs for the world’s hardwood pulp manufacturers have declined during 2014. According to the Wood Resources Quarterly, the global Hardwood Fiber Price Index (HFPI) reached its lowest levels since 2009 in 3Q/2014.

The HFPI has trended downward for almost three years after hitting record highs of $117.90/ oven-dry metric tons (odmt). The Index declined to lows of $96.76/ odmt during 3Q/14. The biggest declines in pulpwood prices were seen in Sweden, Russia, Brazil and Australia. The prices here were impacted by stronger US dollar.

The largest consumption of hardwood fiber in the world is in Brazil where the pulp production has been on an upward trend for over two decades. Despite the continued increase in pulp production, and as a consequence higher consumption of wood fiber, prices for Eucalyptus logs have not changed much in Brazilian Real terms, according to the Wood Resource Quarterly (WRQ). In US dollar terms the picture is somewhat different, with prices having fallen as the Brazilian Real has depreciated.

Meantime, the Softwood Fiber price index (SFPI) has continued to remain steady over the past two years, maintaining steady range between $98/odmt and $100/odmt. The chip prices in Western US and Western Canada have increased, whereas prices in Germany and Brazil have declined during 2014.

Although wood raw-material costs for the Russian forest industry have not changed much in Ruble terms, the costs in US dollars for pulplogs have fallen dramatically from the 2Q to the 3Q this year because of the weakening Russian currency. Pulpwood prices have come down to levels not seen in more than six years.