Wood fiber costs decreased in North and South America in 4Q 2012
Lower pulp prices during last summer and an increased supply of sawmill chips put downward pressure on pulpwood prices in North America and Latin America in the 4Q/12. The biggest declines occurred in Western US, British Columbia and Brazil.
Wood fiber prices trended downward in the local currencies in many of the key pulp-producing countries of the world in the fourth quarter of 2012, according to the report Wood Resource Quarterly (WRQ).
However, as a result of the weakening US dollar, wood fiber prices actually increased in US dollar terms in a number countries and the Softwood Wood Fiber Price Index (SFPI) was up slightly (+0.1%) in the 4Q/12 to $100.13/odmt. The biggest increases from the 3Q to the 4Q occurred in Eastern Canada, Finland, France and New Zealand, WRQ added.
The price declines in the local currencies were mainly the result of an increased supply of softwood fiber in regions with extensive lumber production. In the US Northwest, chip prices fell as much as 27 percent during 2012 and pulp mills in the region had some of the lowest softwood fiber costs in the world in the 4Q/12.
