Softwood chip export prices fell 11% in eight months

VANCOUVER (Scrap Monster): Overseas traded softwood chip prices declined by 11 % from August 2014 to April 2015, after having trended upward for more than a year. The FOEX softwood chip price index (PIX-SCG) fell to $165.86 per oven-dry metric ton (odmt) in April, which was the lowest level since late 2013 and 4.3% below the five-year average. The reduced price index was due in part to Japanese pulp mills switching to relatively lower cost chips from Australia.      
 
The hardwood chip price index (PIX-HCG) moved slightly higher in late 2014 and early 2015 to reach $182.47/odmt in April 2015. The current price is back up to the same level as a year ago, but still has a ways to go to reach the record high levels of over $200/odmt that occurred almost four years ago. In April 2015, the price premium for hardwood chips over softwood chips, the highest since early 2014.

Much of the hardwood chip trade in the world is concentrated to Asia where pulp mills in China, Japan, South Korea, Taiwan and India import large volumes of Eucalyptus and Acacia chips from plantations in Southeast Asia, Latin America and Africa. The biggest changes in trade flows of hardwood chips during the first four months of 2015 have been an increase in shipments from Australia to China and from Vietnam to Japan, and a decline in volumes from Chile to Japan. 

Courtesy: Wood Resources International