U.S. South Wood Fiber Prices Surged to Hit 3-Year Highs

SEATTLE (Scrap Monster): The latest North American Wood Fiber Review (NAWFR) report tracking wood fiber markets in all major regions of the US and Canada, says that wood fiber costs witnessed notable declines in many North American pulp mills during the first six months of the current year. However, U.S. South region bucked the trend, with wood fiber prices touching the highest level in over three years.

The wood fiber costs reported the biggest declines in Western Canada and the U.S. Northwest. The lower prices were mainly attributed to healthy production levels at many U.S. sawmills, lower pulp prices and favorable weather conditions for logging activities.

The U.S Northwest sawmills were reportedly running at slightly reduced production levels in Q2 this year. Residual chip supply remained stable as prices dropped. Most sub-regions of the Northwest reported declines in pulplog and residue prices. The hardwood pulplog prices have surged higher by nearly 4% over the previous year during the second quarter. Meantime, the softwood fiber prices remained stable in 2Q/19 in the U.S. Northeast region.

The average pulplog price recorded marginal decline to C$51 per cubic metre in British Colombia. The harvesting challenges on account of cold winter weather conditions sent hardwood pulplog prices in eastern Ontario and Quebec to highest levels last seen in early 2016. The Maritime provinces reported stable mill and pulpmill inventories.

According to NAWFR, wet weather conditions continued to restrain harvesting in the U.S. South. The softwood pulplog prices in Q2 were down marginally upon comparison with Q1 this year.