The cost of wood fiber in Brazilian pulp mill has increased by nearly 80% in two years.
Release time:
2023-09-14
It is understood that, like the trend of wood prices in other parts of the world, the downward trend of wood raw materials prices in Brazilian pulp mills will bottom out in 2020. Moreover, this decline is particularly obvious in Brazil. Although the cost of wood raw materials in Brazilian pulp mills fell to the lowest point in the past 20 years at the end of 2020, its price trend rebounded from 2021 to 2022, and its cost has been growing steadily, and the growth rate is far faster than that in other parts of the world. The data shows that the price of Brazilian softwood and hardwood pulp logs has increased by 76%. The price of eucalyptus pulp logs increased by 56% from the first quarter of 2020 to the fourth quarter of 2022.
Previously, the average price of eucalyptus in Brazil remained stable from 1988 to 2003. From 2003 to 2011, the price of eucalyptus in Brazil continued to rise, reaching an all-time high in 2011, and then showed a downward trend in the next nine years. It is understood that the sharp increase in the cost of wood raw materials in Brazilian pulp mills during the epidemic period is mainly related to the following factors: the supply chain crisis was triggered during the early epidemic period and the demand was limited, but the demand continued to rise after the epidemic; The competition for logs in various regions of the world has intensified; Longer transportation distance; Labor cost increases.
In fact, since 2000, the global hardwood fiber price index (HFPI) has increased by about 40%, and the price of eucalyptus logs in Brazil has increased by nearly 200% in the same period. But on the whole, although the cost of pulp fiber in Brazil has increased significantly in the past few years, the current level is still close to the average level of 20 years.
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