Spiralling raw material and energy costs are forcing further price hikes in the wood panel industry – and more could be on the cards during 2001.
Chirk-based Kronospan has warned that MDF and particleboard prices cannot be contained as increasing production costs can no longer be absorbed.
Deputy managing director Joe Martoccia said: ‘For most of 2000 the entire European wood panel industry has been faced with unprecedented increases in virtually all raw material costs.’
Most manufacturers, he said, have fought hard to minimise the impact by improving manufacturing efficiencies. He added: ‘Kronospan is better equipped than most to deal with this kind of cost inflation, our economies of scale and fully integrated production provide a strong defence.’
Kronospan’s new price levels will come into effect on January 1. However, Mr Martoccia warned that caution should be exercised when quoting prices forward as he predicted further hikes during 2001.
Malcolm Cowley of Willamette Europe is also warning customers to expect price rises from January 1.
Resin and transport costs are impacting heavily and he added: ‘We are also under pressure at the front end as the price of our material is still too low and something has to give.’
