Released on: April 18, 2008, 1:04 am

Press Release Author: Hakan Ekstrom / Wood Resources International

Industry: Industrial

Press Release Summary: Pulpwood costs in Brazil will continue to be record high as
competition increases for smaller logs between the pulp, energy and wood panel
sectors. Wood costs in the 4Q/07 were almost twice the level of four years ago.

Press Release Body: Seattle, USA, Apr 18, 2008 -- Brazilian pulpmills had to pay 8%
more for open-market pulpwood and wood chips in the 4Q/07 as compared to the
previous quarter. The increased competition for smaller pine logs between pulpmills,
energy producers and the wood panels sector has pushed prices to new records,
averaging almost $100/odmt in the 4Q. Less than four years ago, pine pulpwood prices
were just over $20/odmt. The pulpwood market in Brazil has gone through a major
transformation; from previously having had some of the lowest conifer fiber costs in
the world to being close the global average as reported by the Wood Resource
Quarterly (WRQ).

Eucalyptus pulpwood prices purchased in the open market have experienced a similar
price trend the past five years with record prices in 2007. The majority of the
Eucalyptus wood fiber consumed by Brazilian pulpmills is still internally sourced at
a cost lower than the market price. Hardwood pulpwood costs in Brazil remain among
the lowest of all regions tracked by the WRQ, with only Indonesia, Chile and the US
South having lower delivered wood costs.

The pulp and paper industry had another record year in Brazil in 2007, with pulp
production up 2.8% and paper production up 5.5% as compared to 2006. The total pulp
production was 11.8 million tons, of which 9.8 million tons was chemical hardwood
pulp, and two million tons softwood pulp. With no slowdown in sight for investments
in the pulp sector, the Brazilian Pulp and Paper Association is expecting a 17%
increase in pulp production over the coming two years, which would make Brazil the
third largest pulp producer in the world after the US and Canada.

Global pulpwood and sawlog market updates are included in the 50-page publication
Wood Resource Quarterly. The report, established in 1988, also includes regular
updates of pulp, lumber and biomass markets and has readers in over 20 countries.
Press release distributed by PressReleasePoin(http://www.pressreleasepoint.com/)

Contact:
Hakan Ekstrom
Wood Resources International
Seattle, USA
+44 222 656
info@wri-ltd.com
http://www.woodprices.com


Web Site: http://www.woodprices.com

Contact Details: Wood Resources International
Seattle, USA
+44 222 656
info@wri-ltd.com
http://www.woodprices.com