Categories: General Date: Jul 28, 2020 Title: PIX Wood Prices and Sawn Timber 28.7.20
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PIX Wood Finland and PIX Sawn Softwood Timber FAS Finland – During the wood market summer lull, there has been some development in the Finnish forest industry sector regarding planned projects. Metsä Fibre will proceed in August to the project engineering phase for its bioproduct mill planned for Kemi, northern Finland. The final decision for this project is expected to be made this fall. A bit southeast of Kemi, Kaicell Fibers has received an environmental permit for its pulp and bioproduct factory planned to be built in Paltamo. The investment decision will be made when the environmental permit process is fully through, i.e. if potential complaints will be handled favorably for the project. Koskisen is planning a new sawmill at its main location in Järvelä, southern Finland. The new relocated sawmill would replace an older one close by and would have an annual capacity of 365,000 m³, which could be later expanded to 500,000 m³. The mill would also be producing wooden panel products. The investment decision could be made this year with the possibility of the mill being ready in 2022. In the biofuel sector, NordFuel is planning a large biorefinery to be built in Haapavesi, North Ostrobothnia. The firm has received 24.5 M€ in investment support from the government to construct the plant. The facility is set to produce over 80 million liters of bioethanol and 250 GWh of biogas annually using forest chips and forest industry by-products as raw material. The final investment decision is expected in 2021.
The roundwood trading volumes in June showed a decline from both the previous year and the previous month, according to the wood trade statistics from the Finnish Forest Industries Federation. Compared to May 2020, the latest monthly volume decreased by 14%, with the same true for both logs and pulpwood. Individual grades showed declines of 6-17%. Comparing the volume year-over-year, the total volume decreased by 11%, consisting of a limited 2-% drop in logs and 17% drop in pulpwood. Here, the individual grades, except spruce logs (+2%), showed declines, the largest one in pine pulpwood (-26%). The prices showed a slight downward trend in both sawlog indices but some strengthening in pulpwood. The PIX Softwood Sawlogs Finland index weakened by 18 cents, or by 0.32%, to 56.31 EUR/m³. The PIX Birch Sawlogs Finland index value increased by 20 cents, or by 0.46%, landing at 43.64 EUR/m³. The PIX Pulpwood Finland benchmark value moved upwards by 11 cents, corresponding to 0.61%, with the index closing at 18.12 EUR/m³.
The Finnish sawn softwood export prices reported for both of our indices included a mixed-bag of changes, however, with those upward being more significant in most grades. Opposite to the previous month, most of the sub-indices headed clearly northwards in June. Hence, based on June data, the PIX Sawn Timber Pine FAS Finland index got stronger by 2.93 euros, corresponding to 1.69%, with the index settling at 176.15 EUR/m³. The PIX Sawn Timber Spruce FAS Finland benchmark showed a strengthening of exactly 4.00 euros, or of 2.20%, and landed at 185.47 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.