Cautious optimism that the decline in demand for timber pallets and packaging is slowing was expressed by Timcon’s president at the organisation’s AGM in Manchester.
John Dye told members that the bottom of the market may be in sight but added that the virtual disappearance of imported timber for the pallet manufacturing sector had left companies with reduced supplies of wood and price increase pressure.
Mr Dye said timber price pressure had been further exacerbated by unfavourable exchange rates, while end product prices had fallen to unsustainable levels.
He said business in the sector remained up to 40% down compared with two years ago.
“We want all members of the supply chain to be aware of these pressures on the business and to collaborate to ensure we rebuild the position of timber pallets and packaging together, in the fastest and most efficient way we can.”
The AGM heard that home-grown timber suppliers had reported good demand due to cuts in capacity and the reduced levels of imported timber going into pallet manufacture.
But Mr Dye warned that the shift in demand in favour of home-grown timber “should not obscure” the weak market demand, which was, in fact, exerting severe downward pressure on prices.
