Midway secures 11% increase for woodchip exports to China

Company News

by Rachael Jones

Australia’s largest wood-fibre processor and exporter, Midway (ASX:MWY) has secured a significant increase in hardwood woodchip export prices from major Chinese customers.

As a result of recent contract negotiations, major Chinese customers have agreed to an average price increase of 11 per cent for Midway woodchip export volumes in the first half of the 2019 calendar year.

This means that major Chinese customers will pay on average of $US182 per bone dry tonne for Eucalyptus globulus woodchips, next year.

As two-thirds of total Midway woodchip volumes go to China the price increase is expected to positively impact second half profits in the 2018-19 financial year.

Shares in Midway (ASX:MWY) is 3.2 per cent higher at $3.20.
 

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.