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.

For Immediate Release

SEATTLE/EWORLDWIRE/April 13, 2011 --- Global pulp production in the second half of 2010 was higher than many had anticipated, and pulp markets were better than they had been the first six months of the year, reports Wood Resource Quarterly. 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/NZ 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. As a consequence, the Softwood Wood Fiber Price Index (SFPI) increased for the third consecutive quarter. The Index reached US$103.60/odmt, which was the highest level since the beginning of the financial crisis, and the SFPI is now 16 percent above the first quarter of 2009 price. The biggest price increases in the fourth quarter of 2010 occurred in the U.S. Northwest, Sweden, Spain and Brazil.

The Hardwood Wood Fiber Price Index (HFPI) has gone up faster than the SFPI since early 2009. The fourth quarter of 2010 Index was US$108.28, which was up 3.4 percent from the previous quarter and almost 18 percent higher than the first quarter of 2009. The HFPI has only been higher twice since its inception over 20 years ago. Pulp mills in Germany, Spain, France and Brazil all had to pay more for hardwood logs in their local currencies. In addition, the U.S. dollar weakened against most currencies and therefore contributed to a higher Price Index.

One of the few regions that experienced reductions in wood fiber costs in 2010 was the U.S. South, with fourth quarter prices being about 10 percent lower than in the first quarter. Wood prices in the South were the lowest in all of North America in the fourth quarter of 2010, and pulp mills in this region have benefited from some of the lowest wood fiber costs in the world.

Global timber market reporting is included in the 52-page quarterly publication Wood Resource Quarterly. The report, established in 1988 and with subscribers in over 25 countries, tracks sawlog, pulpwood, lumber and pellet prices and market developments in most key regions around the world.

Contact Information
Wood Resources International LLC
Hakan Ekstrom
info@wri-ltd.com
http://www.woodprices.com

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CONTACT:
Hakan Ekstrom
Wood Resources International LLC
10654 NE 204th Pl
Bothell, WA 98011
PHONE. 425-402-8809

SOURCE: Wood Resources International LLC