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.