Contributing Member of the Energy & Industrials Councils

All News Analyses by this Author

The black liquor tax credit in the US has limited the fall of wood chip and pulpwood prices in the 2Q/09

July 2, 2009

Analysis of:The Black Liquor War | online.wsj.com

In 2008, US pulp companies started to take advantage of a loophole in the US tax law, which will result in an influx of billions of dollars to a struggling industry. As a consequence, prices for wood chips and pulpwood in the US have not fallen as much as they would have without the subsidy.

Wood pellet producers are increasingly competing with pulp manufacturers for wood fiber

June 18, 2009

Analysis of:Investment in Renewables Up in Q2 | www.renewableenergyworld.com

The global wood pellet industry has developed remarkably fast, evolving from being practically non-existent 15 years ago to being an important wood fiber consumer which is increasingly competing with pulp and wood-panel industry for wood raw-materialundefined

Vietnam’s rapidly expanding plantation resources are becoming an important supply source for pulpmills in Japan and China

June 11, 2009

Analysis of:PAPER PRODUCTION, CONSUMPTION RISING IN VIETNAM | www.paperage.com

Vietnam is now one of the most important suppliers of plantation Eucalyptus and Acacia wood chips to the pulp industry in both Japan and China. The country has expanded shipments gradually over the past six years and is now the world’s fourth largest hardwood chip exporter. Will more wood chips be consumed domestically in the future?  

Decline in global demand for forest products reduces timber prices in China

June 3, 2009

Analysis of:China’s wood products exports and imports continue to slide | www.itto.int

Sawlog prices in China declined for the second consecutive quarter in the 1Q 2009 because of reduced demand for lumber, panels and paper products both domestically and from export markets. Softwood sawlog prices were by about ten percent from the peak in the 3Q/08, while Eucalyptus pulpwood prices only have fallen three percent during the same period.  

Expanding timber plantation resources in Uruguay attract pulpmill investments from European forest companies.

June 1, 2009

Analysis of:Ence sells 100 pct of Uruguay pulp mill project | www.reuters.com

Favorable timber growing conditions, a good business climate and a stable political environment has attracted a number of European forest companies to invest in Uruguay the past few years. The establishment of fast-growing Eucalyptus and pine plantations could eventually support two or three new pulpmills. 

Wood fiber costs are rising for wood pellets manufacturers in Europe because the industry is expanding rapidly

June 1, 2009

Analysis of:Closing the Wood Pellet Gap | www.biomassmagazine.com

The expanding wood pellet industry in Europe is increasingly relying on pulpwood and wood chips for its raw-material needs, as the supply of lower-cost sawdust cannot meet the fast rise in demand for wood fiber. The biomass sector is now competing with both the wood-based panel manufacturers and pulpmills for wood residues and logs.

Wood fiber costs are rising for wood pellets manufacturers in Europe because the industry is expanding rapidly

June 1, 2009

Analysis of:Closing the Wood Pellet Gap | www.biomassmagazine.com

undefined The expanding wood pellet industry in Europe is increasingly relying on pulpwood and wood chips for its raw-material needs, as the supply of lower-cost sawdust cannot meet the fast rise in demand for wood fiber. The biomass sector is now competing with both the wood-based panel manufacturers and pulpmills for wood residues and logs. undefined

Pulpmills in the US Northwest continue to have higher wood costs as compared to the US South despite substantial price declines in the 3Q

November 3, 2008

Analysis of:North American Woodfiber Demand Falls On Shutdowns | www.paperage.com

Wood fiber costs for pulpmills in western US fell substantially in the 3Q/08 after having reached a 13-year record-high in the previous quarteras the result of lower demand and high inventories of wood chips and pulpwood. With the hurricane season more intensive than usual, wood raw-material supply flow for both pulpmills and sawmills in the US South were interrupted in the 3Q. Heavy rainfall that followed the severe winds has drastically reduced both logging activity and the transport of logs resulting in slightly higher pulpwood costs this fall. Despite the recent price increases, pulpmills in the US South have benefited from fairly stable wood fiber costs the past 15 years. Since 2002, softwood chip prices have gone up by 18% compared to the WRQ Global Average Conifer Fiber Price, which has gone up almost 40%.

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