European panel producers have expressed their concern regarding the production costs and material supply that could have a negative effect on the sector.
Wood availability and the general price of raw materials were big topics at the recent annual general meeting of the European Panel Federation, with a 20% increase in wood and glue prices during 2006 highlighted as an example, as was the competition European producers face from overseas markets such as China.
Increasing energy and transport costs were also seen as challenges that face the wood-based panels market.
Ladislaus Döry, EPF president, and Uldis Bikis, president of the European Federation of the Plywood Industry, both addressed these issues in speeches to wood-based panel producers present at the meeting in Stresa, Italy, although both added that 2006 had been a strong year for the panel market.
Mr Döry stated that enhanced construction activity had helped maintain board demand across the continent, with production and use of chipboard, MDF and OSB increasing.
Mr Bikis said that the European plywood market was in the same boat, with importers underpinning the sector and “competition with overseas exporters is fierce”.
