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Global Timber and Wood Products Market Update > Articles & News
18 March 2018
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Articles & News Articles & News

Future Suppliers of Softwood Lumber to the US Market

The Global Forest Industry in the 4Q/2017

New type of wood - stronger than steel

An increase in wooden products exports is expected this year

Furnidec Business, from 9 to 11 March, a landmark for furniture

How to use the white pin to rebuild a school

Lignetics Inc. now holds an even stronger position in the England and mid-Atlantic markets

Two Okanagan projects have been remarked for excellence in wood architecture and design

The most celebrated projects at Wood Design Awards

Just five hours to mount a prefabricated house


German forests will be used much more as energy sources in the future

What is the difference between "wild forest wood" and plantation wood

Forests will become an invaluable "carbon sink"

Could wood be a key sustainable resource of our future?

Fireplaces - the heart of a home

Vietnam`s wood exports are predicted to reach $7.6 billion

Officials of the Forestry Commission have intensified their fight against deforestation

A massive increase in hardwood plantation production is planned in Tasmania

Some TIPS on how to use ash from your wood

Poland must stop the logging immediately

FIMMA-MADERALIA awaits you in February at its 38th edition

Investors from Japan are rushing into wood-burning biomass projects to lock in still-high government subsidies

Sawlog prices were up in most regions of the world in in the last quarter of 2017

Brazilian Police have shut down a major illegal logging and forest credit fraud scheme

A new mass timber program in Canada

The "mass timber" from Oregon has strong economic potential

China formulate the nation`s timber structure construction development plan

New use for pine and poplar wood

Global Timber Wordwide

The best way to build in wood

The Global Forest Industry - a report by WRQ

The strong evolution of lumber industry

The performance of an innovative wood technology

US Northwest is forced to bulid log inventories for the winter season

New technology for a revitalized timber industry

Press Release by Interforst - forests are suffering from climate changes

Drivers, Challenges and Trends for wooden floor market

Brazilian forest products sector grows 12% in January - September

Measures to stop deforestation in Nova Scotia

Global Timber and Wood Products Market Update

Global Timber and Wood Products Market Update
The fiber costs for pellet plants in North America have trended downward the past year with the US and Canadian Pellet Feedstock Price Indices reaching their lowest levels in over four years in the 2Q/17, according to the North American Wood Fiber Review

With the feed stock shifting towards lower cost fiber, including industry and forest residues, total wood costs for pellet manufacturers fell during 2016 and early 2017, according to the North American Wood Fiber Review. The PFPI price indices for the US and Canada have fallen 16% and 26%, respectively since 2013.

Seattle, USA. Wood pellet manufacturers in North America consume wood fiber from a variety of sources with different price levels, trends and cost drivers. The WRI pellet feedstock price indices for Canada and the US (PFPI-US and PFPI-CA), which were launched in 2013, show a quarterly volume-weighted price for the fiber consumed by each country’s pellet sector. Each individual facility’s estimated mix of fiber (roundwood, sawdust, shavings, microchips, etc.) are calculated using local fiber pricing to determine a weighted price, which is further combined with production capacity and operating rate to calculate the final regional index price.

The price indices for both the US and Canada have trended downward the past few years and reached record lows in both countries in the 2Q/17. The PFPI-US has fallen 15% from its peak in the 3Q/13 to the 2Q/17. Slightly declining roundwood prices, plummeting sawdust costs, and a change in the feedstock mix towards lower cost residuals in both the Gulf States and the Atlantic States were the major reasons behind the decline in the PFPI-US Index the past year.

A snapshot of the various feedstocks currently being used by the US export pellet sector shows 50 percent was roundwood in the 2Q/17, followed by significant volumes of sawdust and shavings, and an increasing supply of forest microchips.

The Canadian price index, PFPI-CA, which ccombines the larger Western export pellet sector primarily in BC with the smaller Eastern sector found in Ontario, Quebec, New Brunswick and Nova Scotia, has fallen more than the US index (in US dollar terms), mostly because of the weaker Canadian dollar. However, wood fiber costs for pellet manufacturers have also fallen slightly in Canadian dollar terms because of lower costs for logs the past few years. From its record high in early 2013 to the 2Q/17, the PFPI-CA declined 26%. The lower indexed price in the 2Q/17 primarily reflectedthe falling costs of sawdust and shavings and incremental increases in the usage of these feedstock forms over higher cost roundwood.

The North American Wood Fiber Review (NAWFR) has tracked wood fiber markets in the US and Canada for over 30 years and it is the only publication that includes prices for sawlogs, pulpwood, wood chips and biomass in North America. The 36-page quarterly report includes wood market updates for 15 regions on the continent in addition to the latest export statistics for sawlogs, lumber, wood pellets and wood chips.
Global Timber and Wood Products Market Update
Global Timber and Wood Products Market Update
August 2, 2017