Australasia's home for timber news and information

Global chip prices to China step up

Hardwood chip prices for the world leading Chinese market were around 10% higher on average in March than in February, according to the latest analysis from IndustryEdge. At USD196.98/bdmt, the global average price was at a new high in March. Source: Timberbiz

Tim Woods, managing director of independent market analysis firm, IndustryEdge told Daily Timber News, “The rise in delivered prices in China has a little to do with currency movements, but all major suppliers saw prices higher in March.”

Long-running monthly analysis that details the range of prices for deliveries into China show that after bottoming in mid-2017, average prices have risen progressively. The lowest price is almost always supplies from Vietnam, which have – on average – risen more than the higher priced supplies over the last two years.

“It is plain to see that Australian supplies are invariably on the high side of the average price, and are regularly the highest priced.” Woods said. “That makes a lot of sense. Australia is shipping eucalypt against Vietnam’s lower-yielding Acacia. Each tonne is worth more and so commands a higher price.”

The other participant in the ‘high price’ is often Chile, which also ships eucalypt species.

“There is a war on between Chinese pulp producers and their South American counterparts.” Mr Woods said. “Our view is that the Chinese pulp mills are battling a coordinated South American competitor and they have to have the fibre to do that. That is pushing prices higher right now.”

IndustryEdge also supplies analysis of deliveries to Japan and Taiwan in its monthly data series and updates in its monthly Wood Market Edge market update.