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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.

Oct 23, 2018

Market Comments

PIX Sawlogs and Pulpwood Finland Indices

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PIX Sawlogs, Birch Sawlogs and Pulpwood Finland – The preliminary numbers from the 12th National Forest Inventory show that the largest logging reserve in Finland is located in the North Ostrobothnia and Kainuu regions. It is possible to increase the sustainable logging volume the most in these regions. The total logging utilization rate in Finland is 86% of the total sustainable reserve. In addition to the already announced pulp mill and biofuel projects, a new smaller scale hardwood sawmill is planned to be built in Akaa, southern Finland. The main raw material at the sawmill would be aspen.

The total trade volume kept increasing in September after the summer slow-down, 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 over 40% from the previous month, and they were also 13% higher, y-o-y. Compared to September 2017, all log grades showed growth of 15-20%, and pulpwood pine and birch sales increased again about 10-20%, while pulpwood spruce showed a decrease of similar size. From the previous month, the volumes went up by about 40% in sawlog and pine and birch pulpwood grades, while spruce pulpwood increased about 50%. On the price front, the sawlog prices turned around  heading north. The PIX Softwood Sawlogs Finland index value moved up by 40 cents, or by 0.63%, and settled at 64.15 EUR/m³. The PIX Birch Sawlogs Finland index value headed north by 60 cents, or by 1.30%, ending at 46.78 EUR/m³. The PIX Pulpwood Finland benchmark value instead showed a minor 7-cent decrease, corresponding to 0.39%, with the index closing precisely at 18.00 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.