Wood chip prices have increased in most countries over the past year in local currencies. In the Nordic countries, for example, domestic prices increased by about 20 percent between the fourth quarter of 2011 and the fourth quarter of 2012, while in Central Europe wood fiber costs increased by 30-50 percent over the same period.
Pulp prices in Latin America rose 25-40 percent, while wood prices in Canada rose slightly less, by 15-35 percent. The southern United States was the only region where prices remained virtually unchanged over the past year.
The global hardwood fiber price index (HFPI) saw the largest increase in recent years, rising from $78.79/ton in the third quarter of 2020 to $100.07/ton in the fourth quarter of 2022, an increase of 27 percent. The global softwood fiber price index (SFPI) increased over the same period by about 13 percent, from $93.13/ton to $104.79/ton in the fourth quarter of 2022.
“Wood fiber costs are by far the largest cost component in pulp production,” explained ResourceWise‘s FisherSolve.Wood costs accounted for nearly 60 percent of the cash cost of pulp produced worldwide in the fourth quarter of 2022. The other cost shares were energy (17 percent), chemicals (14 percent), materials (5 percent) and labor (5 percent). Wood cost shares varied significantly by country, ranging from 45 to 75 percent. The Nordic countries and Germany are at the lower end of the wood cost range, while energy accounts for a relatively high percentage. The highest shares of wood costs are generally found in Asia, including China and Japan, while the shares of energy and chemicals are often less than 10 percent of total cash costs.
