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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.

Jun 25, 2019

Market Comments

PIX Wood Finland and PIX Sawn Softwood Timber FAS Finland

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PIX Wood Finland and PIX Sawn Softwood Timber FAS Finland – According to statistics by Luke, the total felling of roundwood in Finland was 78.2 Mm³ in 2018. This was again a record-high number, increasing by 6 Mm³ from the previous year. From the total felling, 89% was for forest industry use and 11% went to energy production.

According to Wood Resources International (WRI), the prices of sawlogs have declined globally during this year. According to them, the reason for this is both high supply of wood and decreased demand for sawn timber. Some estimates say that the positive trend for sawn timber is over in Finland as well. The Chinese economy has been somewhat  unstable while cheaper Russian products have taken an increased share of the market. Meanwhile, Russia has limited the exports of roundwood and as a result its market has seen oversupply of wood according to some reports. The unstable situation in the MENA area also impacts the Finnish sawn timber export outlook.

The roundwood trading volume increased in May from the previous month, according to the wood trade statistics from the Finnish Forest Industries Federation. The total volume of the grades covered by our indices increased by over 70% from April. All grades showed increasing volumes from the previous month, the biggest increase being in spruce pulpwood as it more than doubled its volume. Other grades showed also clear upward changes of around 60-80%. However, comparing the volume to the number a year ago, it shows a decline of 43%, with about 35% in pulpwood and more than 50% in logs. The PIX Softwood Sawlogs Finland index value still kept going down and decreased by 39 cents, or by 0.66%, with the index settling at 58.69 EUR/m³. The PIX Birch Sawlogs Finland index value, instead increased by 1.39 euros, or by 3.18%, landing at 45.06 EUR/m³. The PIX Pulpwood Finland benchmark value showed a limited growth of 4 cents, corresponding to 0.22%, with the index closing at 18.11 EUR/m³.

The sawn softwood timber export prices showed changes in both directions this month. Most of the reported prices for pine grades pointed down, while spruce had more of a mixed bag of changes. Based on May numbers, the PIX Sawn Timber Pine FAS Finland index continued heading down with a decline of 3.30 EUR/m³, corresponding to 1.76%, and landing at 183.88 EUR/m³. After a decline in the previous month, the PIX Sawn Timber Spruce FAS Finland benchmark went again slightly up, increasing by 1.01 EUR/m³, or by 0.53%, closing at 192.25 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 moving average for our benchmark values, after removing the extreme highs and lows before the index calculation. The PIX Sawn Softwood Timber FAS Finland indices are currently based on monthly price reporting from Finnish export sawmills. The indices are calculated with fixed weights on six sawn timber quality grades, which are individually weighted by the volumes reported by the sawmills.