Panel production increased by 10-12% over the course of 2010 and the expectation is that it will continue to rise, subject to securing sufficient raw material, said a Wood Panel Industries Federation (WPIF) spokesperson.
Thanks to increased sawmill activity, supply was “reasonable” in the last quarter, but competition for co-products is becoming ever more intense and that is pushing up prices.
“In the last quarter prices were pushed up between 12-15%,” said the spokesperson. “This is purely being driven by demand and it’s coming from the biomass sector.”
Recycled material supply is also under more pressure, particularly as there has been a “dramatic increase” in exports, including to overseas biomass facilities.
“Stobart Biomass and others are trying to take control of the supply chain and so are influencing the market,” said the WPIF.
“At the moment they’re exporting reclaimed wood but when more wood-compliant energy facilities come on stream in the UK the exports will dry up and it will all go to these plants – in the meantime, they’re securing the supply.”
