Wood fiber costs declined in the 4Q/11

Global wood fiber costs for pulp manufacturers declined in the 4Q/11 as pulp prices fell, with global wood fiber price indices dropping 3.5 percent, reports the “Wood Resource Quarterly”.
As a consequence, prices for wood fiber, the highest cost component when producing pulp, were down throughout the world.
The global wood fiber indices for softwood and hardwood fiber declined 3.5 percent from the 3Q/11. Global pulp prices fell by about 20 percent from July to December last year. Weakening demand for pulp and lower product prices squeezed pulp company profit margins, so many companies tried to reduce their costs for wood fiber.