WRQ Reported Drastic Decline in Softwood Pulplog Prices Across Europe

SEATTLE (Scrap Monster): The wood raw material costs for pulp manufacturers declined in moist regions across the world in Q3 2019, reported Wood Resources Quarterly (WRQ). This is upon comparison with the prior quarter as well as the corresponding quarter a year before.

The biggest price decline for softwood pulplogs and wood chips were seen in Germany, France, Sweden and the U.S. Northwest. The only region to report higher pulplog prices during the quarter was Western Canada, where the prices reported quarter-on-quarter jump by 10%.

The Softwood Fiber Price Index (SFPI) reported decline by 2.2% over the prior quarter to total $89.26/odmt during the third quarter of the previous year. Incidentally, this is the lowest level in two years, WRQ noted.

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Germany witnessed dramatic decline in softwood pulplog prices in 2019. The average price for contracted logs hit historic low levels.

The Hardwood Fiber Price Index (HFPI) stabilized around $90/odmt in 2019, although it dropped slightly in Q3. The wood fiber costs surged higher by 13% in Russia. China and U.S. South region recorded surge in prices by 8% each. On the contrary, pulpmills in Germany reported 10% decline in wood fiber costs.