China s Hunger for Wood Raw Material Pushes Timber Prices Upward Increasing
Seattle, WA, October 20, 2010 -- Continued increases in demand for wood raw-material from sawmills, plywood plants and pulp mills in China has pushed domestic log prices upward and many Chinese companies are increasingly exploring the opportunities of importing more logs and wood chips to supplement the domestic fiber sources.
Wood fibre costs for the global pulp industry reach new highs in 2011 with the biggest increases seen in Russia, Finland and Western US, reports the Wood Resource Quarterly. Wood costs account for about 60 percent of the production costs when manufacturing pulp for paper.
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.