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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.

Aug 28, 2018

Market Comments

PIX Sawlogs and Pulpwood Finland Indices

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PIX Sawlogs, Birch Sawlogs and Pulpwood Finland – Both prices and volumes of imported wood to Finland have been on a rise during this year. In May, the prices of imported coniferous pulpwood show increases of about 40-50% while the prices of imported birch pulpwood have risen by about 25% compared to one year ago. The main imported product was birch pulpwood with over 1.5 Mm³ while the imports of pine and spruce pulpwood were less than 0.3 Mm³. Imports of logs are on a much lower level with birch and spruce volumes reaching about 0.1 Mm³ and pine staying at about half of this. Majority of the imports, over 70%, came in from Russia, while Estonia and Latvia covered about 10 % each.

The slower summer season decreased the wood trade volumes in July, according to the wood trade statistics delivered by the Finnish Forest Industries Federation. While the total volume of the grades covered by the indices went down by 58% from the previous month, they were still the same 58% higher, y-o-y. Year-on-year, all log and pulpwood grades showed clear growth, between 25% and 78%. However, the seasonal lull made the change negative in all grades when compared to June 2018, the drop being between about 40% and 70% depending on the grade. On the price front, after many months of increasing prices, all the indices headed downwards. The PIX Softwood Sawlogs Finland index value moved down by 45 cents, or by 0.70%, and settled at 64.21 EUR/m³. The PIX Birch Sawlogs Finland index value headed south by 1.39 euros, or by 2.91%, ending at 46.38 EUR/m³. The PIX Pulpwood Finland benchmark value decreased the least, i.e. by 6 cents, corresponding to 0.33%, with the index closing at 17.86 EUR/m³. All indices are still on a significantly higher level than in the beginning of the year.

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.