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FOEX Indexes Ltd is an independent company providing audited, trade-mark registered pulp, paper, recovered paper and wood based biomass price indices.

Sep 25, 2018

Market Comments

PIX Sawlogs and Pulpwood Finland Indices

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PIX Sawlogs, Birch Sawlogs and Pulpwood Finland – The prices of sawn softwood timber exports have increased during this year. Together with e.g. improved demand in the North African markets, the export price of pine timber has increased more than the price of spruce timber. This year, also pulpwood exports to Sweden have been on a rise, according to Wood Resources International. Especially the tight pulpwood supply situation in Sweden has boosted the Finnish export market. Finnish wood is now seen competitive against the imports from the Baltic countries. The situation can be expected to persist for a while as the forest fires during the summer 2018 continue to limit the domestic supply in Sweden.

After the lower summer volumes in July, the trade picked up pace again during August, according to the wood trade statistics delivered by the Finnish Forest Industries Federation. The total volume of the grades covered by our indices went up by almost 50% from the previous month, and they were also 15% higher, y-o-y. Compared to August 2017, all log grades showed growth of about 25%, and pulpwood pine and birch sales increased about 10%, while pulpwood spruce showed a decrease of a similar size. From the previous month, the volumes went up between 35% and 65%, with the average increase for both sawlogs and pulpwood at around 50%. On the price front, the sawlog prices continued their downward trend, while pulpwood price turned back upwards helping the index to reach its highest nominal value in the index history. The PIX Softwood Sawlogs Finland index value moved down by 46 cents, or by 0.72%, and settled at 63.75 EUR/m³. The PIX Birch Sawlogs Finland index value headed south by 20 cents, or by 0.43%, ending at 46.18 EUR/m³. The PIX Pulpwood Finland benchmark value, as said, increased by 21 cents, corresponding to 1.18%, with the index closing at 18.07 EUR/m³.

The PIX Wood Finland price indices are based on the monthly wood trade data by the Finnish Forest Industries Federation, which we convert to a volume weighted 3-month revolving average for our benchmark values, after removing the extreme highs and lows before the index calculation.