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July 15, 2019

Wood fiber costs for softwood pulp manufacturers have reached the highest level in five years

Wood fiber costs for softwood pulp manufacturers have reached the highest level in five years

The Softwood Fiber Price Index (SFPI) has risen the past two years. In the 1Q/19, the Index reached its highest level since 2014. Higher wood fiber costs in the US South, Russia and New Zealand contributed to most of the rise of the SFPI in late 2018 and early 2019. It is likely that the upward trend will come to a halt during the summer, and then start to decline in the second half of 2019.

The cost of wood fiber for the world’s pulp industry has trended upward for over two years because of higher demand and a tightening regional supply of wood fiber. From the 1Q/17 to the 1Q/19, prices for pulplogs and woodchips (in the local currencies) have gone up in all 17 countries tracked by the Wood Resource Quarterly (WRQ).

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