Consumption of pulpwood over next decade expected to continue shift toward Asia, Latin America; trend will keep prices low, impact species mix, finds report

Audrey Dixon

BOSTON , October 15, 2012 (press release) – Over the next ten years, consumption of pulpwood is expected to continue its shift from North America and Western Europe to Asia and Latin America. This shift will continue to keep prices low and impact species mix according to the 2012 World Pulpwood Study, released today by RISI, the leading information provider for the global forest products industry.

"For the last 15 years we have seen steady trends in the market. Real prices for pulpwood have been tracking downward on a global-weighted basis, while the world's pulpwood supply potential has been rapidly expanding. As this trend continues, it is likely that any price gains will be mixed as some regions are expanding pulp and paper capacity, and others are closing due to narrowing profit margins," said Peter Barynin , Principle Timber Economist at RISI.

"We're also anticipating, that as global demand for pulp accelerates and shifts towards other regions, changes in species mix and desired log grades, will follow," continued Barynin.

RISI's 2012 World Pulpwood Study provides a comprehensive outlook and analysis of primary pulpwood markets and their shifts towards developing regions.

The 2012 World Pulpwood Study Includes:

Historical pulpwood price analysis
Global and regional perspectives, analyses, and outlooks
Forecasts for supply, demand, prices, capacity, and production to 2021
Detailed regional industry and harvest profiles for the top 20 countries consuming pulpwood
Analysis of pulpwood consumption manufacturing residuals and fiber furnish
Review and forecast of global pulpwood trade

The 2012 World Pulpwood Study answers:

How resources will be allocated to accommodate accelerated global demand for pulp
What record pulpwood demand will mean for fiber prices, investment/divestment in pulp, and international trade of wood fiber
How the vast areas of high-yield plantation forests in South America and Asia will satisfy announced capacity investment and production targets for pulp
Which countries are most exposed to industry restructuring and consolidation
How trade of wood fiber, pulp and paper will adjust to regional costs and market developments

For more information on the 2012 World Pulpwood Study, visit www.risi.com/worldpulpwood

About RISI (www.risi.com)

Owned by UBM plc, which is listed on the London Stock Exchange, RISI is the leading information provider for the global forest products industry. The company works with clients in the pulp and paper, wood products, timber, biomass, tissue, nonwovens, printing and publishing industries to help them make better decisions.

Headquartered in Boston, MA, RISI operates additional offices throughout North and South America, Europe and Asia.

About UBM plc (www.ubm.com)

UBM plc is a leading global company. We inform markets and bring the world's buyers and sellers together at events, online, in print and provide them with the information they need to do business successfully. We focus on serving professional commercial communities, from doctors to game developers, from journalists to jewelry traders, from farmers to pharmacists around the world. Our 6,000 staff in more than 30 countries are organized into specialist teams that serve these communities, helping them to do business and their markets to work effectively and efficiently.

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