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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.

May 22, 2018

Market Comments

PIX Sawlogs and Pulpwood Finland Indices

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PIX Sawlogs, Birch Sawlogs and Pulpwood Finland – The Finnish Forest Industries Federation estimates that the improving economy in Europe and Asia helped the fibre-based production grow in Finland during Q1/2018, y-o-y. Cartonboard production grew by 10% to about 1.0 Million tons, pulp by 3% to about 2.0 Mt and paper by 0.3% to 1.7 Mt. Meanwhile, sawn timber production fell by 6% to 2.9 Mm³. According to them, the reason here was challenges in wood procurement. Some bio-based projects in Finland have moved forward a bit, with Kaidi’s biorefinery receiving its environmental permit and Finnpulp increasing its ownership structure with a Chinese tissue maker. In addition to these plans, also Metsä Group is considering changes at its Kemi pulp mill, either by updating the current mill, or, alternatively, by building a whole new unit.

Total trading volume increased in April by over 40%, y-o-y, and 5% from March, according to the wood trade statistics delivered by the Finnish Forest Industries Federation. Month-on-month, pine sawlog trade increased by over 10%, while spruce and birch decreased by a few percent. The pulpwood volume increased mostly in pine. Compared to April 2017, the volume in sawlogs went up by over 30%, while pulpwood showed an even larger increase of 55%. Both in sawlogs and pulpwood, pine showed the largest increase percentage. The PIX Softwood Sawlogs Finland index value moved up by 1.14 euros, or by 1.90%, and settled at 61.21 EUR/m³. The PIX Birch Sawlogs Finland index value headed north by 32 cents, or by 0.72%, ending at 44.56 EUR/m³. The PIX Pulpwood Finland benchmark value increased by 40 cents, corresponding to 2.39%, with the index closing at 17.11 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.