RISI's International Woodfiber Report Cautions 'US South Woodfiber Crisis to Persist'

Jan 21, 2010, 12:09 ET from RISI

BOSTON, Jan. 21 /PRNewswire/ -- Today RISI, through its International Woodfiber Report (IWR), indicated that woodfiber availability in the US South will remain at "crisis levels" for some time to come. The report stated that even though prices have remained muted, there remain widespread inventory shortages and that most wood stockpiles have dwindled to critical lows. IWR also reports that it will take several weeks "at best" for a return to stability, but that for the time being, prices are being held down by a series of facilities shutting down for maintenance. The report notes that while it is possible that prices have peaked, it would only take a few additional days of wet conditions to force mills to choose between outages or higher woodfiber prices.

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Chris Lyddan, Executive Editor of the International Woodfiber Report, comments, "Open market prices across the US South in the fourth quarter gained an average of $3/ton, or 9%, for roundwood and chips, compared to the third quarter, yet were 8% below the same period a year ago." He continued, "On a cost basis, however, some multi-mill companies experience higher 'all in' woodfiber expenses in December-January due to substantial internal volumes traveling great distances between supporting, sister mills, often landing at $45-50/ton, 10-20% above fourth quarter averages."

The International Woodfiber Report is a monthly publication that reports on North American woodfiber prices, supply and demand. A one-year subscription to the International Woodfiber Report can be purchased for $597 at www.risi.com/wf , by calling 866.271.8525, or by sending an email to wt@risi.com.

About RISI

RISI is the leading information provider for the global forest products industry. The company works with clients in the timber, wood biomass, pulp and paper, wood products, tissue, nonwovens, printing and publishing industries to help them make better decisions.

Headquartered in Boston (Bedford), Massachusetts, RISI operates offices in Brussels, Belgium; Atlanta, Georgia; San Francisco, California; Portland, Oregon; Sao Paulo, Brazil; Shanghai, China; Helsinki, Finland; Singapore; and Charlottesville, Virginia. More information can be found at www.risi.com.


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