The first quarter of 2018 proved to be a record setting period for the international pulp markets. Wood Resource Quarterly is reporting that the Global Softwood Fiber Price Index, or SFPI, has risen by 3.4% from the previous quarter.
Also, the WRQ has reported that all 20 regions (except for Eastern Canada) have seen significant price increases.
European Hardwood Pulplog Prices
European hardwood pulplogs in Russia, Spain, and Finland witnessed a more gradual rise in prices versus that marked increases seen in the softwood markets; boating a 8.0% higher mark than this time last year.
Record Low Wood Fiber Costs
Market producers and manufacturers are expected to yield healthy returns in 2018 as wood fiber costs have reached a record low at 22.5% of market pulp prices.
As wood fiber comprises upwards of 60% of manufacturing overhead, the expected profit margins will to continue to surprise market analysts going forward.
Southern Bleached Softwood Kraft Pulp (SBSK) also witnessed a drop in prices, hitting a 25 year low of 16.2%. As pulp prices continue to rise in softwood markets, we can expect to see this trend continue.
Wood Fiber and Pulp Prices
As wood and pulp prices continue to hit record numbers throughout global production regions, we expect to see the market continue its current course.