Wood fibre costs reach new highs

Wood fibre costs for the global pulp industry reach new highs in 2011 with the biggest increases seen in Russia, Finland and Western US, reports the Wood Resource Quarterly. Wood costs account for about 60 percent of the production costs when manufacturing pulp for paper. According to the Wood Resource Quarterly, wood fibre costs have gone up about 25 percent since early 2009, reaching record levels in the 2Q/2011.Wood fibre prices, which currently are at or close to record highs, have fluctuated quite substantially over the past 24 years the WRQ has tracked global forest industry markets. Prices trended downward during most of the 1990’s and early 2000 when they were 60 percent below current levels. This was followed by a substantial increase from 2002 to 2008 with wood costs reaching record levels in early 2008, only to plummet almost 20 percent in late 2008 with the onset of the global recession.

In 2009 and 2010, wood fibre markets have strengthened as a result of higher prices for market pulp, limited availability of wood chips from sawmills worldwide and a weakening US dollar against most currencies.

Source: Wood Resources International LLC, http://www.woodprices.com/