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Rubber and Wood October 12, 2021 09:30:05 PM

Global Softwood Fiber Costs Surged Significantly in Q2 This Year

Paul Ploumis
ScrapMonster Author
The Softwood Fiber Price Index (SFPI) touched highest level in two years of $92 per oven dry metric ton (odmt) in the second quarter this year.
Global Softwood Fiber Costs Surged Significantly in Q2 This Year

SEATTLE (Scrap Monster): According to Wood Resources International (WRI), the softwood fiber costs surged higher over the prior quarter in 2Q 2021, in spite of higher supply of residuals from sawmills in Europe and North America.

Almost all regions experienced price increases in the range of 1-5%, compared with the prior quarter. On the contrary, B.C. wood chip prices skyrocketed by almost 20%, mainly on account of tighter fiber supply and higher NBSK pulp prices. All regions except the U.S. and Germany witnessed 5-20% rise in softwood fiber costs over the past one-year period.

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The Softwood Fiber Price Index (SFPI) touched highest level in two years of $92 per oven dry metric ton (odmt) in the second quarter this year. Meantime, Hardwood Fiber Price Index (HFPI) recorded marginal increase by 1% over the prior quarter to reach $84.41 per odmt. The margin between the two indices increased further.

Most major pulp-producing countries saw minor price adjustments in 2Q 2021. The costs of hardwood pulplogs recorded notable increase from 1Q 2021 in U.S. South, Eastern Canada and Spain.

The Chinese reliance with respect to wood chip imports on Vietnam and Australia has diversified to more supply sources including Thailand, South Africa and Brazil. On the other hand, Japan’s imports of wood chips from Vietnam and Australia continued to increase during the quarter.

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