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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.

Nov 24, 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 – Overseas sales have increased their share of European sawn softwood timber exports to 45% of the total from 30% ten years ago, Wood Resources International (WRI) reported. Previously exports in Europe were made more into neighboring countries but deliveries to other continents have increased, with exports to China expanding the most. The largest producers and exporters of sawn softwood timber are Sweden, Finland, Germany, and Austria, covering together about two thirds of the total export volume, WRI said. Markets outside Europe cover 65% of the Finnish exports, which is the highest share among listed European sawn softwood exporters. Finland differs from the other major exporting nations also by not selling significant volumes to the US market.

Russia, the world’s largest exporter of softwood logs, is planning to ban these exports starting from January 2022. The reasons for this include preventing illegal logging, but also increasing domestic manufacturing of forest products, mainly sawn timber. The directive by President Putin names unprocessed softwood and precious hardwood timber, which could possibly exclude the lower-value birch pulpwood exported to Finland. According to a WRI report, China has been the main destination for Russian logs, covering about 75% of the volumes, with Finland following as the second largest export country with a 10% share during 2020.

The roundwood trading volumes in October turned their course and went back down compared to both the previous year and month, according to the wood trade statistics from the Finnish Forest Industries Federation. Compared to September 2020, the monthly total volume traded declined by 15%, with both pulpwood and sawlogs in the same ballpark. For individual grades, the tendency varied between the about 10% decline of both pine grades and the around 20% decrease of other grades. Comparing volumes year-over-year, the total volume decreased by 12%, consisting of -5% in logs and -17% in pulpwood. The trend for individual grades varied between spruce sawlogs’ 2% decline and birch pulpwood’s 23% drop. Prices showed some strengthening in sawlogs, while being down on the pulpwood side. The PIX Softwood Sawlogs Finland index strengthened by 39 cents, or by 0.68%, to 57.53 EUR/m³. The PIX Birch Sawlogs Finland index value headed north by 40 cents, or by 0.93%, landing at 43.37 EUR/m³. The PIX Pulpwood Finland benchmark value slid down by 22 cents, corresponding to 1.25%, with the index closing at 17.37 EUR/m³.

The Finnish sawn softwood export prices reported for our indices were twofold. The pine grades continued their climb up with most of the sub-indices strengthening, while spruce showed an opposite development. Hence, the PIX Sawn Timber Pine FAS Finland index strengthened by 2.83 euros, corresponding to 1.60%, with the index settling at 179.37 EUR/m³. The PIX Sawn Timber Spruce FAS Finland benchmark went down by 1.38 euros, i.e. by 0.72%, and landed at 189.96 EUR/m³.

The PIX Wood Finland price indices are based on the monthly wood trade data by the Finnish Forest Industries Federation, which Fastmarkets FOEX converts 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.