timber09's blog
Softwood lumber imports to China have increased by 81% in 2009. It is not inconceivable that China will import more lumber than Japan in 2009, a historical first. Canadian sawmills have been the major beneficiaries of this new fast-growing market, reports the Wood Resource Quarterly.
Higher hardwood pulpwood costs in Brazil, Australia, Russia and Sweden pushed the 3Q/09 Global Hardwood Fiber Price Index (HFPI) to the highest level in 12 months, reports the Wood Resource Quarterly. The HFPI was over six percent higher than the Global Softwood Fiber Price Index (SFPI), the biggest difference in 21 years.
The pulp industry in Canada has sharply reduced production the past two years both as a result of weaker pulp and paper markets worldwide and also because of less competitive pulp manufacturing facilities. Wood costs have increased for many plants as the result of reduced availability of relatively inexpensive sawmill residuals, according to the North American Wood Fiber Review.
The international financial crisis has put a damper on global trade of wood chips used for pulp manufacturing in 2009, reports Wood Resources International. The biggest decline has been in shipments from Australia, South Africa and Uruguay to Japan.
Australia, the world’s largest chip exporter, has reduced Eucalyptus and pine chip exports substantially in 2009 due to weak pulp markets in Japan. In the domestic market, pulpwood prices have increased over 13% in US dollars this year as the Australian currency has strengthened, reports the Wood Resource Quarterly.
The largest cost component when manufacturing wood pulp is the cost of wood fiber. In the 1Q/09, this cost was 53% of the total production cost worldwide. Both the relative and nominal cost of wood have declined the past year; wood fiber costs in the 2Q/09 were at their lowest levels in over two years, according to the Wood Resource Quarterly.
Brazil increased pulp production in 2008 by about eight percent. Wood fiber costs have remained unchanged in the local currency in the 2Q/09 but were eight percent higher in US dollar terms as compared to the previous quarter, according to the Wood Resource Quarterly.