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Hardwood prices index 'third highest ever'
22/02/2012
The price of hardwood generally appears to be holding up in regions around the world, despite some declines of late.
According to the Hardwood Wood Fibre Price Index, the fourth quarter of 2011 showed the third highest level ever recorded. Indeed, the index was five per cent higher than the equivalent quarter in 2010.
However, it was down 3.6 per cent from the third quarter of 2011 as wood and timber prices struggled to find a balance.
The Softwood Wood Fibre Price Index also fell, dropping by 3.3 per cent on the previous three-month period. Despite the decline, however, the index remained 1.6 per cent higher than the fourth quarter of 2010.
Timber itself is still in demand as many industries are finding uses for the material. It appears much of the recent decline in prices is actually being driven by changes within the pulp industry, which has seen a drop in demand as businesses look for lower product prices due to squeezed profit margins.
But even within the pulp industry, there is a large degree of variation in demand, with wood costs in China accounting for significantly more of the overall production price than in Canada.
According to the Hardwood Wood Fibre Price Index, the fourth quarter of 2011 showed the third highest level ever recorded. Indeed, the index was five per cent higher than the equivalent quarter in 2010.
However, it was down 3.6 per cent from the third quarter of 2011 as wood and timber prices struggled to find a balance.
The Softwood Wood Fibre Price Index also fell, dropping by 3.3 per cent on the previous three-month period. Despite the decline, however, the index remained 1.6 per cent higher than the fourth quarter of 2010.
Timber itself is still in demand as many industries are finding uses for the material. It appears much of the recent decline in prices is actually being driven by changes within the pulp industry, which has seen a drop in demand as businesses look for lower product prices due to squeezed profit margins.
But even within the pulp industry, there is a large degree of variation in demand, with wood costs in China accounting for significantly more of the overall production price than in Canada.
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