Prices for hardwood chips traded overseas increased 1.3% in January, 2015, but still 5.8% lower than in early 2014, according to the HCG Index
Prices for hardwood chip shipped over the Pacific Rim and the Atlantic to markets in Asia and Europe have trended downward for more than three years. However, in December 2014 and January 15, prices moved slightly upward, according to the FOEX price index PIX-HCG. Overseas traded softwood chip have experienced declining prices since last summer and were 8.1% lower in January 2015 than in August of 2014.
Globally traded hardwood chips for the manufacturing of pulp and wood-based panels have trended downward for much of the past three and a half years. However, this trend broke in late 2014 and early 2015 when prices slowly started to increase.
The FOEX global hardwood chip price index, PIX-HCG, increased by 1.3% in January as compared to the previous month, and was 1.8% higher than in November last year. The Index, which is based on prices for hardwood chips traded overseas to markets in Asia and Europe, reached a four-year low in November 2014 when it was 16.6% below the all-time-high in November of 2011. The PIX-HCG reached US$180.58/odmt (CIF) in January 2015, with the biggest price increases being those of hardwood chips shipped from Latin America and Vietnam to Japan and China.
The softwood chip price index, PIX-SCG, fell sharply during the fall of 2014, from US$185.73/odmt in August 2014 to US$170.67/odmt in January 2015. This 8.1% decline over just five months was partly the result of a stronger US dollar, as well as because of reduced costs for the ocean freight.
About the PIX wood chip prices indices
FOEX in cooperation with Wood Resources International (WRI) has launched two wood chip price indices, the Softwood Chip Global (SCG) and Hardwood Chip Global (HCG), both part of the PIX index family of FOEX. The Indices represent prices (CIF) for wood chips that are traded globally overseas for the manufacturing of wood pulp and wood-based panels. The Indices are reported monthly the third Tuesday of the month on the FOEX web site (www.foex.fi). If you are interested in participating as a data provider, subscribing to the index histories (data available from January 2010), or are considering using the Indices commercially, please contact tuomo@foex.fi.
About FOEX Indexes Ltd
FOEX Indexes Ltd is a private, independent company which specializes in providing audited, trade-mark registered price indices for pulp, paper, recovered paper, biomass and wood chips. Financial institutions use the FOEX Indices as benchmarks when setting prices for SWAP-deals and other financial instruments hedging against product price risks.
The PIX Indices are trademark registered by FOEX Indexes Ltd. Any commercial use of the indices is subject to permission from FOEX and the terms outlined in the License Agreement between the user/-s and FOEX. If you are considering commercial use of PIX-SCG or PIX-HCG, please do not hesitate to contact FOEX for further guidance.
About Wood Resources International LLC
Wood Resources International LLC, an internationally recognized forest industry-consulting firm established in 1987, publishes two quarterly timber and pulpwood price reports and has subscribers in over 30 countries. The Wood Resource Quarterly, established in 1988, is a 50-page quarterly market report which includes global prices for sawlogs, pulpwood, wood chips, lumber and pellets, as well as market commentary about developments in global timber, biomass and forest industry. If you have any questions, please contact Hakan Ekstrom (hekstrom@wri-ltd.com).
Wood Resources International LLC
Hakan Ekstrom
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