Reported by Wood Resource Quarterly, global wood fiber prices indices continue to decline in 1Q/16 with softwood price index at its lowest since 2006.
Both the Hardwood Wood Fiber Price (HFPI) and Softwood Wood Fiber Price Index(SWFP) fell in 1Q/16 with generally lower prices in Europe, Canada and Russia due to their weakening currencies against US dollar. These current prices are at their lowest in almost 10 years for many countries.
The HFPI has been on a constant decline in the past few years with the current index being 29% lower than its record-high in 2011. The biggest price drop since the peak happened in countries with fast-growing plantations such as Australia, Brazil, Chile and Indonesia. The decline was largely due to stronger US dollar thus leading to hardwood costs in local currencies increasing to over 25% in countries such as Brazil, Chile, Indonesia and Russia.
The decline of softwood fiber prices occurred globally in both local currencies and US dollar in 1Q/16. The downward trend began in Europe in early 2014 and has continued since then – although prices are starting to level out with the bottom might be seen in some countries.
The biggest decline happened in Canada, France, New Zealand and Russia.
The SFPI dropped 1% in 1Q/16 and has been at its lowest ever since.