The North American

Wood Fiber Review

Since 1983

A Quarterly Analysis
of North American
Wood Fiber Markets

A subscription service of Wood Resources International Ltd.

 NORTH AMERICAN WOOD FIBER REVIEW
The North American Wood Fiber Review, established in 1983, has tracked wood fiber prices in the
United States and Canada for almost two decades. In addition to following wood fiber prices in all major
regions in North America, the report also tracks all major wood fiber markets around the Pacific Rim.

The 28-page report is the only publication that consistently provides comparable updates of conifer and
non-conifer prices, average and range, for all major markets in North America and the Pacific Rim. The
report is a vital information source for everyone that needs to track wood fiber costs, chip trade and fiber
consumption by the pulp industry in the most active market in the world.

Wood Fiber Costs

Douglas-Fir Hemlock Pine Cedar Hardwood
Ave Range Ave Range Ave Range Ave Range Ave Range

Chip and pulplog costs are tracked for all major Washington
US$/BDU (delivered)

Northwest (Puget Sound) 88 66-120 98 72-130 ..... ..... 65 58-74 98 90-120

markets in the U.S. and Canada, including the Northeast
Southeast
.....
85
.....
68-90
68
85
62-118
68-90
65
.....
58-118
.....
.....
.....
.....
.....
.....
.....
.....
.....

Pacific Northwest (9 subregions), Lake States, Lower Columbia River

(SW Wa + NW Or)
90 70-138 91 70-128 89 70-138 53 41-64 116 105-135

Oregon
Northeast, U.S. South (4 subregions), and British West (Willamette Valley) 76 63-118 84
Alberta
63-128 76 63-118 46 41-51 ..... .....

California
Columbia (3 subregions), Alberta, Ontario, Coast
Northeast
66
70
British Columbia
Chips
54-90
65-78
61 (49 - 67)
66
.....
54-90
.....
66
70
54-90
65-78
55 42-62 (a)
65 60-70
.....
.....
.....
.....
Quebec
Quebec and the Maritime Provinces in Canada. Idaho
Chips 73 (59 - 81)
Roundwood 69 60 54-92
(21 - 88) 60 54-92
Chips
60Ontario
54-92
79 (59 - 93)
38 Chips32-48 81..... (59 - 97)
Roundwood 107 (90 - 130)
.....

Montana 60 52-120 60 52-120 60 100

Roundwood 52-120
(76 -121)..... ..... ..... .....
Canadian Maritimes
Weighted Average 81 (52-138) 85 (52-130) 81 (52-138) 48 (32-74) Chips 114 (90-135)
73 (59 - 81)
U.S. Pacific Northwest
Information regarding the fiber markets in Western Chips 76 (48 - 127)
Roundwood 64 (44 - 94) U.S. Lake States
Roundwood 69 (21 - 88)

Chips 60 (48 - 79) U.S. Northeast

U.S. and Canada is particularly detailed; with fiber Roundwood 83 (68 - 99) Chips 75 (42 - 106)
Roundwood 88 (47 - 128)

prices for five separate species in 12 subregions. U.S. Mid-Atlantic

Chips 64 (62 - 67)
U.S. East Gulf Coast Roundwood 64 (60 - 71)
Chips 66 (61 - 71)
Roundwood 70 (63 - 70)
Maps with softwood and hardwood fiber prices U.S. West Gulf Coast
Chips
U.S. Southeast
61 (58 - 66)
Chips 68 (67 - 70)
(average and range), expressed in US$ per dry weight Roundwood 63 (62 - 64) Roundwood 64 (61 - 68)

delivered to the pulpmill, make it easy to compare the

raw material costs in different regions.

Fiber Consumption and Inventory Company Location Mar-99 Jun-99 Sep-99 Dec-99 Mar-00
(1000 BDU)
Abitibi-Consolidated Inc. Steilacoom, Wa 2 1 1 1 1

Boise Cascade Corp. St. Helens, Or 19 14 16 12 14

Wallula, Wa 40 20 30 14 23

Wood chip and pulplog inventories are included in the report as Daishowa American Ltd

Fort James Corp.

Port Angeles, Wa

Camas, Wa/Wuana, Or
6

75
9

70
15

70
12

70
6

75

indicators of future demand for wood fiber. Total monthly wood Georgia Pacific Corp. Bellingham, Wa
Coos Bay, Or
Toledo, Or
7
17
22
22
14
35
22
21
31
22
22
44
15
20
23

fiber consumption and wood fiber inventories are

Inland Empire Paper Co. Spokane, Wa 1 2 2 2 2

Kimberly Clark Everett, Wa 10 12 9 8 9

Longview Fibre Co. Longview, Wa 30 30 40 35 35

presented for the Western United States and all Wood Fiber Consumption and Inventory
Louisiana-Pacific Corp.

LP Export, Inc.
Samoa, Ca

Samoa, Ca
22

50
19

33
31

44
34

35
53

40

British Columbia
Oregon Chip Terminal Coos Bay, Or 23 32 22 19 12

Provinces of Canada. 4500

4000
Ponderay Newsprint Co.

Pope&Talbot Pulp, Inc.

Usk, Wa

Halsey, Or
3

15
3

20
4

20
5

20
4

20

Port Townsend Paper Corp. Pt Townsend, Wa 12 17 16 20 19

3500 Potlatch Corp. Lewiston, Id 11 22 21 42 18

Roseburg Forest Products Co. Coos Bay, Or 120 100 90 95 120

In addition, estimates of wood chip inventories for every 3000 Sacramento Export Sacramento, Ca 20 20 19 20 29
1000 m3

Shasta Paper Co. Anderson, Ca 19 19 25 17 11

2500
pulpmill and export facility in the Western United States 2000
Simpson Paper Co.

Smurfit Newsprint Corp.

Tacoma, Wa

Oregon City, Or
23

2
27

1
23

1
16

1
26

Smurfit-Stone Container Corp. Missoula, Mt 40 42 50 65 40

are provided in each issue. 1500

1000
SP Newsprint Co.

Weyerhaeuser Co.
Newberg, Or

Cosmopolis, Wa
1

12
1

12
1

12
1

12
1

12
Longview, Wa 50 60 65 55 45
Springfield, Or 85 85 68 45 45
500 Tacoma, Wa 34 43 42 26 35

Willamette Industries, Inc. Albany, Or 40 38 35 42 45

0 TOTALS, Western U.S. 837 844 846 812 799
6

9
6

-21.8 0.8
8

0.2 -4.0 -1.6

9
6

9
96

97

98

99

Change from last quarter (%)

l-9

l-9

l-9

l-9
-9

-9

-9

-9

-9

-9

-9

-9
n-

n-

n-

n-
pr

pr

pr

pr
ct

ct

ct

ct
Ju

Ju

Ju

Ju
Ja

Ja

Ja

Ja

Pulplog inventory at pulpmills and chipmills in March 2000 (ton)

O

O
A

Puget Sound (Wa): 69,000 (-48 % from Dec, 1999) Columbia River (Wa, Or, Id): 294,000 (-26 % from Dec, 1999)

Consumption Inventory
Export chip inventory: 262,000 BDU (+14.4 % from Dec., 1999)
North American Chip Exports
The U.S. is the largest exporter of wood fiber to the
Pacific Rim, accounting for almost 35 % of all wood Wa Or Ca Ak North South South Total, U.S.
Change
from last Q
East Central (%)

chips traded in the region. The Wood Fiber Review Softwood Chips
Japan 46 139 9 0 0 0 0 194 -25.1

tracks all conifer and non-conifer chips exported Canada

Other
111
0
0
0
0
0
22
0
71
0
35
0
0
18
239
18
-12.8
na

from both the U.S. and Canada, by export region Total

Change from
last Q (%)
157

-37
139

10
9

-80
22

-52
71

914
35

-8
18

-18
451

-15
-15.4

in North America and by overseas destination. Hardwood Chips

Japan 46 43 53 0 0 163 456 761 -11.1
Canada 0 0 0 0 61 0 0 61 -11.6
Korea 0 0
Chip
0
Exports
0 0
from the U.S.
70
in 70
1998/1999
52.2

In 1999, conifer chips from the United States and Other 0

300 0 0 0 0 Conifer
0 0 0 na
Total 46 43 53 0 61 163 526 892 -8.1
Change from 4q/98
Canada accounted for more than almost 45 % of all last Q (%) -30
250
19 29 na -12 -28 -1 -8
1q/99
2q/99
conifer fiber imported to Japan: the biggest importer TOTAL 203 182 62 22 132 198 544 1343 -10.7

1000 mt (dry weight)

Change from 3q/99
last Q (%)
200
-36 12 -27 -52 74 -25 -2 -11
4q/99
of wood fiber in the world. Exports from the U.S. 150
South accounted for almost 27 % of all hardwood
100
fiber imported to Japan.
50

The North American Wood Fiber Review provides 0

Washington Oregon California Alaska Northeast South

complete chip export statistics for the U.S. and Canada, as

well as updates of negotiated contract prices for all North
America chip export regions.

Chip Prices and Trade in the Pacific Rim Region

Shipments of wood chips in the Pacific Rim region
account for more than 75% of globally traded
wood chips. To help you follow the changing trade Origin
1000 odmt
4q/98 1q/99 2q/99 3q/99 4q/99 Change Avg value
% US$/odmt

flow of conifer and non-conifer chips, the North USA 732 697 651 771 681 -11.7 143
Australia 623 573 805 684 785 14.8 118
American Wood Fiber Review includes quarterly Chile 356 309 438 354 330 -6.8 137
South Africa 289 206 303 399 390 -2.3 131
import volumes for the three major importing China 170 102 155 129 140 8.5 117
countries in the region - Japan, South Korea and Other 396 470 306 386 447 15.8 123
Total 2566 2357 2658 2723 2773 1.8 129
Taiwan. Trade volumes are provided for the current Change from Imports of Non-Conifer Wood Chips 1998/99
quarter as well as the preceeding 4 quarters to last quarter
900(%) -1.0 -8.1 12.8 Japan
2.4 1.8

provide historical perspective. Wood chip inventory 800

4q/98
700
1q/99
information for Japan is also provided on a monthly 600 2q/99
3q/99
basis.
1000 odmt

500 4q/99

400

300
In order to put North American fiber costs in perspective, 200

prices are compared to other key suppliers of wood fiber 100

in the Pacific Rim region such as Chile, Australia and 0

USA Australia Chile S. Africa China Other

New Zealand.
In summary, the North American Wood Fiber Review includes the following information:

North America Average delivered conifer and non-conifer chip and pulplog prices for 12
regions in Canada and the U.S. Prices are reported as a range and average
price in comparable units. The section also includes chip trade statistics, by
region and destination, for the U.S. and Canada.

Western U.S. Wood chip, pulplog and sawmill by-product prices for 10 subregions in the
Western U.S. are tracked on a regular basis. Inventory figures for every
pulpmill and export facility and total monthly wood fiber inventory and
consumption for the pulp industry in the region are also presented.

Canada Average quarterly wood fiber prices for seven regions in Canada are presented
in each issue. Also included are monthly wood fiber consumption and inventory
statistics for all provinces of Canada.

Pacific Rim The Review also provides average delivered wood fiber prices for countries
around the Pacific Rim, as well as wood chip import statistics for Japan, Taiwan
and South Korea. Monthly chip inventory information for the Japanese pulp
industry is also presented in each report.

The North American Wood Fiber Review is published in March, June, September and December,
and is offered on an annual subscription basis for US$ 1200 per year. Single issues are available at a
cost of US$ 350 per issue. The report is available in PDF format on our website.

For further information, or to initiate your subscription, please contact Mr. Håkan Ekström at our
office in Bothell, Washington.

About our company...

Wood Resources International Ltd. was founded in 1987 to better fill the need for consulting services
to the forest products industry worldwide. The company provides internationally-oriented consulting
services by forest industry experts, with offices in both Tacoma and Bothell, Washington. Since 1987,
the company has completed nearly 150 assignments in 35 countries, and has established a proven
record of performance for a broad array of clients. Client-directed consulting services are offered in
forest products economics, market positioning, and planning and financial analysis.

Wood Resources International Ltd. also publishes "Wood Resource Quarterly (WRQ)," the source
for global wood fiber price data and market information for the forest industry since 1988. WRQ
tracks average delivered wood fiber prices in 15 countries around the world on a consistent, and
comparable basis. The report of approximately 45 pages also provides a global wood fiber market
update, pulp grade fiber costs and a summary of trade of wood chips around the world each quarter.
The report is available in PDF format on our website.

P.O. Box 1891

Bothell, Wa. 98041 USA
Telephone: (425) 402-8809
Fax: (425) 402-0187
Web site: www.WRI-Ltd.com
E-mail: Info@WRI-Ltd.com