Hardwood fiber is more expensive than softwood fiber profit
In the U.S. pulp and paper sector, hardwood fiber tends to be used primarily in printing & writing papers, tissue papers, and corrugating medium, all of which utilize high proportions of hardwood fiber. Trade volumes for printing & writing papers, however, are much larger than trade volumes for tissue papers or corrugating medium. Thus, logically, globalization and trade exert an influence on demand for hardwood fiber in the United States via shifts in trade and demands for printing & writing paper grades (as well as trade in hardwood market pulp).
According to industry experts information expensive hardwood pulpwood prices in Brazil, Australia, Russia and Sweden in the third quarter of the year 2009 have driven Global hardwood Fiber Price Index (HFPI) to the highest level during the last twelve month. HFPI was six percents higher the Softwood Fiber Price Index (SFPI), which makes the biggest difference for the last twenty- one years.
As industry experts report, hardwood fiber prices for international pulp industry rose faster than the prices for softwood fiber. Industry professionals inform, the Global Softwood Fiber Price Index has always been 5-10USD higher than the one for Hardwood Fiber. Due to hardwood fiber prices’ bigger growth in comparison with the softwood prices, such index changed in 2009.
Wood industry experts specify that Global Wood Fiber Indices reflect international wood fiber prices for pulp industry in the countries subject to industry experts’ researches. All countries included in the Indices have 85-90% of international pulp manufacturing overall volumes, obtained during wood usage in manufacturing process. Quarterly average prices and country wood fiber consumption information make the basis for prices specification.
The HFPI was more than 4.23 USD, making quarterly price of 99.15 USD in comparison with the second quarter information. Such data is the result of wood prices growth in Brazil, Australia, Russia and Sweden. Experts clearly state the fact that currently hardwood fiber price is 6 USD more than the one for softwood fiber.
The SFPI has grown as well. Such growth was due to US dollar weakening against all 14 currencies of the countries included in the Index. Germany, Brazil, New Zealand and Austria have encountered the biggest growth.
US dollars and oven- dried metric tons of wood fiber is the calculation unit for SFPI index, mainly including the countries with natural conifer kinds in Northern Hemisphere together with HFPI, which includes mainly wood-fiber prices in non- conifer plantation forests.
Global wood fiber prices dropped down significantly during past two decades, compared to all period from 1990 to 2000 and grew from 2002 to 2008, experts report. In early 2008, wood prices have reached their record amount and fell quickly within following 12 months, and increased in early 2009.
