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Wood costs for global pulp industry increased 17 percent

June 1 2011  Wood costs for the global pulp industry have increased 17 percent the past two years.

Global market pulp production increased by seven percent in 2010, which increased demand for wood raw-material. As a result, prices for wood chips and pulplogs were up in most regions of the world, according to the Wood Resource Quarterly. The Softwood Wood Fiber Price Index (SFPI) has increased 16.5 percent the past two years, while the Hardwood Wood Fiber Price Index (HFPI) went up 17.7 percent.The total production of chemical market pulp last year reached an estimated 45 million tons, which was about seven percent more than was produced in 2009. North America and Western Europe increased production by 10 percent and 12 percent, respectively, while Latin America reduced production slightly. Other regions, including Asia, Africa and Russia, also raised production in 2010.High demand for wood raw-material by the pulp industry pushed the costs for wood fiber upward in the second half 2010, as reported in the Wood Resource Quarterly. Softwood chips and softwood pulplog prices were higher in most key markets around the world in the fourth quarter of 2010.The biggest price increases in the fourth quarter of 2010 occurred in the US Northwest, Sweden, Spain and Brazil.

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