| ATHENS, GEORGIA – September 19, 2024 – According to the Forisk Wood Fiber Review (FWFR), weighted softwood fiber prices in the U.S. increased by 4% year-over-year through Q3 2024, while Canadian prices decreased by 2%. The price hikes in the U.S. are linked to regional market adjustments caused by wet weather and reduced availability of residual chips due to widespread sawmill curtailments and closures. In Canada, most fiber prices are tied to end market products like Northern bleached softwood kraft (NBSK) or lumber, which are currently experiencing a downturn.
Canadian roundwood prices increased by 2%, while chip prices declined by 3% year-over-year. In British Columbia, softwood pulplog prices rose by 8% for the quarter, whereas they dropped by 7% in the Maritimes. Delivered softwood chip prices decreased by 8% in Alberta and 3% in British Columbia but increased by 1% in East Ontario/Quebec. According to Stephen Wright, Product Manager of the FWFR, “The Canadian Forest products industry continues to face significant contraction, with 862 million board feet of capacity reductions announced across three sawmills this quarter. However, the avoidance of a prolonged rail strike and a relatively calm fire season provided some temporary relief.”
U.S. roundwood prices increased by 6% year-over-year, and chip prices rose by 1%, though this varied regionally. In the Lake States and Northwest U.S., prices for most products declined year-over-year, with the exception of residual hardwood chips in the Northwest, which saw a 7% increase. In the U.S. Southeast and South Central regions, fiber prices for roundwood and chips showed mixed year-over-year trends, with South Central hardwood residual prices experiencing the most significant drop at 17%. Northeast fiber prices saw double-digit percentage increases across most products, except for hardwood residual chips, which fell by 2% for the year. Brooks Mendell, CEO of Forisk Consulting, commented, “Depressed softwood lumber markets continue to burden the industry, evidenced by multiple capacity reductions and closures. With fewer available residual chips, pulp and paper facilities are adjusting fiber procurement strategies.”
Wood fiber costs account for over half of total pulp manufacturing costs worldwide. The Forisk Wood Fiber Review includes prices and market commentary for all major North American regions, providing essential data for anyone that needs to track pulpwood, wood chips, and biomass prices in the world’s largest and most dynamic wood fiber markets. The FWFR provides updates of softwood and hardwood prices for major markets in North America. Prices are reported for wood delivered to consuming plants as a range and average. Each report also updates U.S. and Canada trade statistics for lumber, logs, wood pellets, wood chips and pulp.
For more information or to subscribe to the Forisk Wood Fiber Review, visit Forisk's website or contact Nick DiLuzio, ndiluzio@forisk.com, 770.725.8447. | 
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