Prices for Globally Traded Hardwood Chips Fell to Record Low in May

Bothell, WA, August 2, 2016—The prices for globally traded hardwood chips fell to a record low in May 2016, while softwood chip prices reached the highest level in seven months, according to the latest FOEX Chip Price Indexes.

Global trade of hardwood chips have trended upward for six years and totaled almost 24 million tons in 2015.

By far, the two largest wood chip-importing markets are Japan and China, both countries with limited forest resources to supply the pulp industry with sufficient wood fiber.

The general price trend for hardwood chip traded overseas have been downward since late 2011 when the FOEX price index (PIX-HCG) reached a record high of almost $207/odmt. In May of this year this Index was $167.29, representing a 19.1% decline in 4 ½ years. Some of the biggest price declines the past 12 months have been for hardwood chips shipped from Australia to China, from South Africa to Japan, and from Uruguay to Portugal.