Wood Resources International LLC

Export tariffs on logs shipped from Russia, the world's largest log supplier, are set to be reduced as the country becomes a member of the WTO. The proposed new lower tariffs are not expected to increase export volumes to pre-tariff levels, according to the Wood Resource Quarterly. - February 10, 2012

Reduced activities in the housing construction sector in China decreased importation of softwood logs and lumber in late 2011, reports the Wood Resource Quarterly. Despite the decline in the 4Q, total imports during 2011 reached a record high, making China the largest importer of logs and lumber in the world. - February 04, 2012

Global trade of wood chips has gone up substantially the past two years. Hardwood chip export from Chile, Uruguay and Brazil was up 43 percent in 2011 compared to 2009, as reported by the Wood Resource Quarterly. A clear majority of the increase was Eucalyptus chips destined for pulp mills in Japan and Europe. - January 27, 2012

Relatively low fossil fuel prices have reduced the demand and prices of woody biomass throughout the US the past three years, reports the North American Wood Fiber Review. The Pacific Northwest currently has the lowest biomass prices, slightly lower than the South, while the Northeast continues to have among the highest costs in the country. - January 14, 2012

Log exportation from New Zealand continues to rise at a record pace, with almost one-third of the country’s timber harvest being processed at sawmills in China. The high demand for logs from overseas has increased domestic sawlog prices to their highest levels in 15 years, according to the Wood Resource Quarterly. - January 03, 2012

Chinese pulp mills increasingly have to rely on imported wood chips for their wood fiber needs. In 2011, record volumes are being imported mainly from hardwood plantations in Vietnam, Thailand and Indonesia. Imported wood chip costs from Vietnam have gone up 40 percent in two years and are closing in on costs for chips shipped to Japan, according to the Wood Resource Quarterly. - December 23, 2011

Slowing lumber markets throughout the world have resulted in declining sawlog prices in many of the major lumber-producing regions in Europe and North America, according to the Wood Resource Quarterly. The biggest price reductions occurred in Japan, Sweden, Poland and Russia. - December 17, 2011

Profit margins are being squeezed for many hardwood pulp producers worldwide with higher wood fiber costs and lower product prices. The hardwood wood fiber price index (HFPI) reached a 24-year high in the 3Q/11 at the same time as hardwood pulp prices fell by 26% from June through October, reports the Wood Resource Quarterly. - November 16, 2011

Increased consumption of softwood lumber throughout the world has moved sawlog prices to new highs in 2011. The Global Conifer Sawlog Price Index (GSPI) reached a 16-year record high in the 2Q/11, with the greatest increases over last year’s prices occurring in Latvia, Poland, Japan, Russia and Germany, according to the Wood Resource Quarterly. - October 21, 2011

The US and Canada have been exporting record volumes of logs and lumber to China in 2011. The Wood Resource Quarterly predicts that exports in 2011 will double those seen in 2010 to reach an estimated value of 2.6 billion dollars. Lumber shipments from Canada alone could reach 1.2 billion dollars this year. The North American share of log and lumber import volumes to China has increased from four percent in 2005 to 18 percent in 2010. - October 12, 2011

Wood costs account for about 60 percent of the production costs when manufacturing pulp for paper. According the Wood Resource Quarterly, wood fiber costs have gone up about 25 percent since early 2009, reaching record levels in the 2Q/2011. - September 17, 2011

European demand for wood pellets has to a large extent, driven the expansion of pellet capacity in both the US and Canada the past five years. The North American Wood Fiber Review reports that in coming years, it is likely that demand for pellets will increase not only in Europe, but also in Asia and North America, which will generate new opportunities for pellet producers, particularly in Western Canada and Eastern US. - August 16, 2011

Wood costs for pulp mills in Western US have increased over the past 12 months, reaching their highest level since early 2008 in the 2Q/11, reports the American Wood Fiber Review. Pulp mills in the US South have slightly lower wood costs than they did in 2010, and continue to have the lowest fiber costs in North America. - July 11, 2011

Last year global demand for softwood lumber increased by more than 10 percent after having hit a 50-year low in 2009. The rise in demand has pushed lumber prices in North America, Asia and Europe to their highest levels in ten months, reports the Wood Resource Quarterly. - July 02, 2011

The world’s largest log exporter, Russia, increased the shipments of logs in the 1Q/11 after having declined for four years, reports the Wood Resource Quarterly. Russian exports of softwood lumber have also gone up substantially, especially to China, Uzbekistan, Japan and Egypt. - May 16, 2011

Sawlog prices in Western US were up about 20 percent in 2010 as an result of increased competition for logs from log buyers in China, South Korea and Japan, according to the North American Wood Fiber Review. Prices for logs in the US South and Canada also moved up last year, but at a slower rate. Sawmills in Western Canada currently have some of the lowest wood costs in the world. - April 15, 2011

Global market pulp production increased by seven percent in 2010, which increased demand for wood raw-material. As a result, prices for wood chips and pulplogs were up in most regions of the world, according to the Wood Resource Quarterly. The Softwood Wood Fiber Price Index (SFPI) has increased 16.5 percent the past two years, while the Hardwood Wood Fiber Price Index (HFPI) went up 17.7 percent. - April 13, 2011

Japan is in urgent need of pre-fabricated houses and manufactured wood products in the aftermath of the earthquake and tsunami that hit the country in early March. Longer term, it can be expected that imports of commodity products such as plywood, lumber and logs will increase to this country, which is already one of the largest importers of wood products in the world, according to the Wood Resource Quarterly. - March 29, 2011

Over the past two years, North America has become a major supplier of wood pellets to Europe. In 2010, an estimated 1.6 million tons of pellets were shipped from the US and Canada to the Netherlands, the UK and Belgium, according to the North American Wood Fiber Review. This is a doubling of volume compared to 2008. - March 12, 2011

Global trade of wood chips was up 25 percent in 2010 because of increased production of pulp and paper products worldwide. China showed the greatest growth in chip imports with an increase over 400 percent in the past two years, as reported in the Wood Resource Quarterly. Australia continues to be the major exporter and shipped 11 percent more in 2010 than in the previous year. - February 16, 2011

Sawlog costs for many sawmills around the world went up during 2010, and the Global Sawlog Price Index reached the highest level in over two years in the 3Q/10, according to the Wood Resource Quarterly. The biggest wood price increases occurred in Western US, Germany, Sweden and Northwest Russia. - February 03, 2011

Over the past 20 years, pulp mills in Eastern Canada have consistently had higher wood fiber costs than the mills in the Western provinces with the exception of a short period in 1995, according to the North American Wood Fiber Review. In the 4Q/10, softwood chip prices had fallen in Quebec and Ontario and increased in British Columbia and Alberta resulting in the smallest cost gap between the two regions in 10 years. - February 03, 2011

The value of softwood logs and lumber exported from North America to China reached over 1.6 billion dollars in 2010, which was 150 percent higher than the previous year and more than ten times as much as in 2006, reports the Wood Resource Quarterly. - January 07, 2011

Sawlog costs in Europe have gone up more than lumber prices the past year, reports the Wood Resource Quarterly. With the expected decline in lumber consumption, many sawmills in Europe are considering reductions in their operating rates. As a consequence, prices for sawlogs are likely to drop from their two–year highs in the coming months. - December 07, 2010

The cost for wood fiber accounts for almost 60 percent of the total production costs when manufacturing pulp. Both softwood and hardwood wood fiber price indices, SFPI and HFPI, have increased about six percent over the past year, according to the Wood Resource Quarterly. - November 18, 2010

FOEX and WRI have agreed to partner in the launching of global wood chip price indices. The combined efforts will ensure that the indices, whose launch is planned for early 2011, will be statistically reliable and thus well suited for forest and energy companies who can use price indices for benchmarking, as well as the financial community, which can use the Indices as price risk management tools. - October 29, 2010

The forest industry in China is continuing its expansion, and with limited domestic timber resources, importation of logs and wood chips are at an all-time high, especially as tight supply of domestic logs has increased local log prices to new highs in the 2Q/10, according to the Wood Resource Quarterly. - October 20, 2010

Prices of wood fiber used for energy declined during most of the recession, partly as a result of the low cost of fossil fuels, which can serve as an alternative source for many industrial energy consumers. However, in the 3Q, biomass prices were up in the South, the Northwest and Southwest, according to the North American Wood Fiber Review. This trend break occurred mainly because of reduced fiber supply and generally lower biomass inventories. - September 27, 2010

Continued healthy markets for lumber, pulp and paper has kept demand for logs at high levels in Sweden. As a result, log and wood chip prices have increased substantially the past 12 months, according to the Wood Resource Quarterly. - September 21, 2010

The global pulp industry benefited from lower wood fiber costs and higher product prices in the 2Q/10. Wood chip and pulpwood prices fell the most in the US, Sweden, Finland, Australia and Eastern Canada. Both the softwood and hardwood wood fiber price indices (SFPI and HFPI) fell for the first time since early 2009, according to the Wood Resource Quarterly. - August 14, 2010

Higher worldwide demand for forest products has increased global shipments of softwood logs by 20 percent in 2010, reports the Wood Resource Quarterly. This year may be a turning point for global log trade, which had fallen 30 percent between 2007 and 2009. - August 09, 2010

Higher demand for forest products in China, South Korea and India is benefiting log and lumber exporters in New Zealand. The value of exported forest products have increased over 54% in 2010, reports the Wood Resource Quarterly. The strengthening export market has pushed domestic sawlog prices to their highest levels in eight years. - July 24, 2010

Woody biomass in the US South is attracting interest from European energy companies in their search for long-term, reliable and competitively priced supply sources, reports the North American Wood Fiber Review. The increased competition for wood fiber has pushed pine pulpwood prices upward in the Southeastern states this past year. - July 16, 2010

Export of wood chips from Australia is on the rebound, reports the Wood Resource Quarterly. After last year’s ten-year low, shipments so far in 2010 are up 38 percent for pine chips and 12 percent for Eucalyptus chips. In addition, an estimated 100,000 tons of wood pellets will be shipped to Europe this year. - July 11, 2010

The supply and demand for Eucalyptus logs in Brazil has been in balance the past year, which has resulted in stable log prices in the local currency, according to the Wood Resource Quarterly. As a result of the strengthening Real, log costs have gone up in US dollar terms and were 25 percent higher in the 1Q/10 than in early 2009. - June 29, 2010

In the 1Q/2010, the Global Sawlog Price Index (GSPI) reached US$76.77/m3, the highest level in over a year, according to the Wood Resource Quarterly. Much of the increase has been the result of a weaker US dollar, but sawlog costs have also gone up in local currencies in many markets, including Finland, Sweden, Germany, Latvia, Russia and New Zealand. - June 09, 2010

Biomass has now surpassed oil to become the number one source for energy generation in Sweden. The increased competition for logs and wood chips between the pulp industry and energy sector has pushed wood fiber prices to new highs, according to the Wood Resource Quarterly. - May 27, 2010

The strong pulp market has pushed wood fiber costs upward in most regions around the world the past 12 months. Both the softwood and hardwood wood fiber price indices (SFPI and HFPI) have gone up the past year and were more than 11 percent higher in the 1Q/10 as compared to 1Q/09, reports the Wood Resource Quarterly. - May 25, 2010

The cost for wood biomass fell in two of the major markets in the US in the 1Q 2010 partly because of the federal program BCAP, according to the North American Wood Fiber Review. The federal government is currently considering different programs of how to contribution to an increased use of renewable energy sources. - May 08, 2010

The international financial crisis in 2009 had a major negative impact on worldwide demand for pulp and paper products. As a result, the consumption of wood chips and pulpwood for pulp production was lower and global trade of wood chips fell 14%, according to the Wood Resource Quarterly. China bucked this trend, almost tripling its imports to became the world’s second largest importer of wood chips last year. - April 23, 2010

Wood fiber costs rose in the US South and in the Lake States during the 1Q because of improved pulp markets and a tight wood fiber supply. In Northwestern US, the picture was different, with reduced production of pulp and paper resulting in declining fiber consumption and lower prices for both wood chips and pulplogs, according to the North American Wood Fiber Review. - April 17, 2010

Despite large timber resources, Russia struggles to attract investments within the forest industry because of political and financial uncertainty in the country. Domestic prices for softwood sawlogs and pulplogs were up in 2009, while hardwood log prices fell as a result of a sharp decline in log exports to Finland, reports the Wood Resource Quarterly. - April 14, 2010

Softwood lumber prices were up in both North America and Europe in the 4Q, but it was more the result of lower inventory levels and reduced production rather than an increase in demand, reports the Wood Resource Quarterly. The hot market for lumber last year was China, which increased imports by 75% thereby passing Japan as the largest importer in Asia. - April 13, 2010

The global pulp and paper industry has substantially increased its use of woody biomass for energy the past few years, which has consequently reduced dependence on fossil fuels, reports the Wood Resource Quarterly. Since 2006, energy generated from biomass has gone up over 50%, last year accounting for 18% of the total energy consumption by this industry sector. - March 09, 2010

Wood fiber costs for pulp mills worldwide increased for the fourth consecutive quarter in the 4Q/09. During 2009, the Hardwood Wood Fiber Price Index (HFPI) moved up 15.4%, while the Softwood Wood Fiber Price Index (SFPI) was up 10.5%, according to the Wood Resource Quarterly. - February 13, 2010

Lumber exports from Brazil have fallen 45% in two years, resulting in reduced demand for sawlogs and lower log prices. In the 4Q/09, pine sawlog prices were down 11% from their peak in 2008, but were still over 300% higher than six years ago, according to the Wood Resource Quarterly - February 10, 2010

In an effort to increase the usage of renewable energy, the US government has implemented a new program, called BCAP, which will subsidize the collection of biomass in 2010 and 2011. Over 500 million dollars has been allocated for the first three months of 2010, reports the North American Wood Fiber Review. There is much uncertainty about how much additional biomass that will actually enter the market as a result of the program. - January 26, 2010

In the 3Q/09, the Global Sawlog Price Index (GSPI) had the highest quarter-to-quarter jump in the 15-year history of the Index, according to the Wood Resource Quarterly. The Index increased for the third straight quarter and reached just over US$73/m3. - January 08, 2010

Softwood lumber imports to China have increased by 81% in 2009. It is not inconceivable that China will import more lumber than Japan in 2009, a historical first. Canadian sawmills have been the major beneficiaries of this new fast-growing market, reports the Wood Resource Quarterly. - January 05, 2010

The wood pellet industry in North America has grown six-fold since 2004, reports the North American Wood Fiber Review. The dramatic expansion has resulted in higher costs for sawdust and wood chips in the regions with the greatest growth, including Western US and Canada. - December 17, 2009