The Global Wood Fiber Indices are weighted global average delivered wood fiber prices for the pulp industry in the regions tracked by the publication Wood Resource Quarterly (see list of regions included in the report below). The regions included in the report together account for 85-90% of the world’s wood-based pulp production capacity. The price is based on the current quarterly average prices, and country/regional wood fiber consumption data.
The Global Softwood Wood Fiber Index (SFPI), which predominantly includes countries with natural conifer species in the Northern Hemisphere, and the Global Hardwood Wood Fiber Index (HFPI), which largely consists of wood fiber prices in non-conifer plantation forests, are calculated in nominal US dollars per oven-dried metric ton (odmt) of wood fiber.
Wood fiber costs have fluctuated substantially the past 27 years
During the past three decades, global wood fiber prices declined during most of the 1990’s and early 2000, and then climbed from 2002 to 2008, following a downward trend from 2012 to 2015, according to Wood Resource Quarterly. Wood costs reached record levels in early 2008 (softwood) and 2011 (hardwood). Current wood fiber costs levels are the lowest since 2005.
The Global Wood Fiber Indices have fluctuated substantially over the past 27 years, with the following highlights:
|Initial Index (1Q/1988)||$84.95||$76.64|
|Record low||$66.18 (1Q/02)||$65.52 (4Q/01)|
|Record high||$112.53 (2Q/08)||$117.91 (3Q/11)|
For the most current Indices, please consult the latest issue of the WRQ.
Wood costs are close to 60 % of the total production costs for pulp mills worldwide
Wood cost is the factor that most often determines the competitiveness of a pulp manufacturing plant. This cost typically varies between 45-66% of the total cash cost depending on product grade and the costs of other components such as chemicals, energy and labor. In the 2Q/15, the worldwide average cost of wood as a percentage of total manufacturing cost was 58%, according to Fisher International’s database. As of late, the countries with the lowest wood cost component (as a percentage of total manufacturing cost) include New Zealand, Russia and Germany, while Japan, China, Indonesia and Spain have had the highest wood cost percentages. Please see the WRQ for historical trends for the world’s major pulp-producing countries.
Regions included in the Global Wood Fiber Indices are the following:
- North America
- Canada, West
- Canada, East
- US, West
- US, South
- South America
- Asia and Oceania
- New Zealand