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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 23, 2020

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 Finland, Finnish forest industry production contracted by 2.9% in April compared to March. New forest industry orders showed a significant drop of 18% in the same statistics. Looking into the future, credit rating company Moody’s gives a weak outlook for the global forest industry. Even though increased demand for hygiene paper in the beginning of the coronavirus pandemic did give some positive numbers for the industry, the closure of major end-users, such as schools, offices and restaurants, will have a significant negative impact. The negative outlook applies at least to paper, pulp, wood products and sawn timber.

The roundwood trading volumes in May showed a decline from the previous year, while staying somewhat on the same level compared to the previous month, according to the wood trade statistics from the Finnish Forest Industries Federation. Compared to April 2020, the latest monthly volume decreased by 4%, consisting of -6% in logs and -2% in pulpwood. Individual grades mostly showed changes of a few percent in both directions, except in spruce logs and pulpwood, which both declined by 10%. Comparing the volume year-over-year, the total volume decreased by 20%, consisting of a 12-% drop in logs and 25% drop in pulpwood. Here, the individual grades showed an about 10-15% decrease in logs and a 15-30 % decrease in pulpwood. The prices showed again a slight downward trend in coniferous sawlogs but some strengthening in pulpwood and birchlogs. The PIX Softwood Sawlogs Finland index weakened by 43 cents, or by 0.76%, to 56.49 EUR/m³. The PIX Birch Sawlogs Finland index value increased by 46 cents, or by 1.06%, landing at 43.84 EUR/m³. The PIX Pulpwood Finland benchmark value moved upwards by a limited 3 cents, corresponding to 0.17%, with the index closing at 18.01 EUR/m³.

The Finnish sawn softwood export prices reported for both of our indices went mainly downwards from the previous month. Most of the sub-indices within the calculation showed a downward movement. The impact of the pandemic may negatively affect buyers’ urge to make new deals at the moment. Hence, based on May data, the PIX Sawn Timber Pine FAS Finland index weakened by 1.08 euros, corresponding to 0.62%, to 173.22 EUR/m³. The PIX Sawn Timber Spruce FAS Finland benchmark showed a more significant decline of 4.12 euros, or of 2.22%, to 181.47 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.