WRI Market Insights: Wood Fiber Costs Saw Notable Decline in 1Q/20

SEATTLE (Scrap Monster): The Wood Resources International (WRI) Market Insights 2020 report suggests notable decline in wood fiber costs in many hardwood pulp-producing countries during the initial quarter of the current year.

The hardwood pulplog prices reported biggest decline in the U.S. South, Russia and the Latin American region, with prices falling between 5-10%, compared with the prior quarter. The U.S. South prices, which recorded second consecutive quarterly decline, dipped to the lowest level in nearly three years. The huge decline in prices was mainly attributed to the reduced demand for logs from regional paper mills and weakened regional currencies against the U.S. dollar.

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The Hardwood Fiber Price Index (HFPI) recorded 4.2% decline over the prior quarter, taking the average price to its lowest level in four years. The Softwood Fiber Price Index (SFPI) was also down by 5.6%, when compared with the corresponding quarter in 2019.

The softwood fiber prices recorded biggest declines in Central Europe, Latin America, and Oceania, whereas it reported minor increases in the US South, Eastern Canada, and Sweden. The wood fiber costs saw notable declines in pulp mills, particularly in Austria, Germany and France, the report said. The average softwood pulplog prices in Germany dropped by 28% year-on-year in 1Q/20.