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Global Wood Fiber Costs Reached New Highs in 2007

Global hardwood pulpwood prices reaching new highs, says Wood Resources International LLC.

Wood fiber costs for pulpmills were higher in a most regions around the world in the 3Q, which led to the highest global average hardwood fiber prices ever recorded. In just a year, the global average price has increased from US$89.37/odmt (oven-dry metric ton) to US$99.22/odmt. The biggest rises occurred in Sweden, Russia, Brazil and Japan.

The Global Average Wood Fiber Price is a weighted average of delivered wood fiber prices for the pulp industry in all 17 regions tracked by the publication Wood Resource Quarterly (WRQ). These regions together account for 85-90% of the world's wood-based pulp production capacity. The price is based on current quarter average prices, and country/regional wood fiber consumption data. The global average for softwood and hardwood is calculated in nominal US$ per oven-dried metric ton of wood fiber.

The average global softwood fiber price was up to US$103.26/odmt in the 3Q/07, which was the highest level since 1995. In US dollar terms, softwood fiber costs were up in practically all regions tracked by the WRQ except for the US South and US West. The weakening US dollar helped the global price upward, but costs were also up in local currencies in the Nordic countries, Russia, Chile and Australia.

Global pulpwood and sawlog prices and market developments are included in the publication Wood Resource Quarterly, which tracks the evolving global sawlog and pulpwood cost situation, including regular updates of the biomass market, timberland investment trends and forest industry profiles in important world regions.

The 50-page market report established in 1988, with readers in over 20 countries, is published by the forest industry-consulting firm Wood Resources International LLC in Seattle, USA. Link: www.woodprices.com

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