What is FOEX Indexes?

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

Apr 23, 2019

Market Comments

PIX Wood Finland and PIX Sawn Softwood Timber FAS Finland

Copyright©FOEX Indexes Ltd.

PIX Wood Finland and PIX Sawn Softwood Timber FAS Finland – According to the Pellervo Economic Research institute PTT, felling volumes are expected to decline a bit in Finland in 2019-2020. According to PTT, this year’s volume is estimated to be 3-4% lower than in 2018 at about 64 Mm³, and in 2020 to amount to about 63 Mm³. The declines in felling is expected to be replaced by stock utilization and increased imports. The high pulp production is expected to keep pulpwood demand high, but sawn timber production is forecast to decline from the previous year and along with that also log demand. Paper production is estimated to continue its slow decline, while paperboard production is expected to remain on a growth path.

Bark beetle damages have affected the central European wood markets in large areas in the region. This has inflated the wood stocks and further actions, such as by cutting the damaged areas are more and more difficult. The coming summer is expected to even further complicate the situation. Finland has not yet been impacted as severely but the warming climate will increase the risk also there.

The roundwood trading volumes showed again a rather large decline in March compared to the previous month, and this time also y-o-y, according to the wood trade statistics from the Finnish Forest Industries Federation. The total volume of the grades covered by our indices decreased by over 25% from February. Grade-wise, the changes were between 20-35%, the biggest decline in coniferous logs with smaller ones in pulpwood. Compared to March 2018, the volumes were also down, but pulpwood showed a somewhat more restrained decline. The PIX Softwood Sawlogs Finland index value showed a rather large decline, 1.81 euros, or 2.96%, with the index settling at 59.27 EUR/m³. The PIX Birch Sawlogs Finland index value decreased only marginally, i.e. by 6 cents, or by 0.14%, landing at 44.35 EUR/m³. The PIX Pulpwood Finland benchmark value inched down by 4 cents, corresponding to 0.23%, and the index closed at 17.67 EUR/m³.

The sawn softwood timber export prices showed both ups and downs, and our pine index continued heading down, while the spruce index changed its course upwards. Based on March numbers, the PIX Sawn Timber Pine FAS Finland went down by 0.83 EUR/m³, corresponding to 0.43%, and landed at 190.17 EUR/m³. The PIX Sawn Timber Spruce FAS Finland gained ground by 3.23 EUR/m³, or by 1.66%, closing at 197.64 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.