Prices in the chronically price-depressed MDF market may begin to bounce back within the next six to eight months, says Malcolm Cowley Willamette‘s UK sales manager.
Mr Cowley said the 10-plus years of low prices for the particleboard – which means that 2001 prices are running up to 30% below those of 1990 – may come to an end as the rapid capacity expansion of recent years slows and demand growth removes surplus capacity from the market.
He added that if MDF demand continues to grow at 10-15% per year, roughly equating to an extra one million m³ per year, then demand could equal supply by the end of the year at the earliest.
‘European supply has outstripped demand for some time but as the market is developing it is growing to take up the capacity. Equilibrium could be reached in six to eight months. And, in my opinion, that will signal firmer prices,’ he said.
Mr Cowley revealed that Willamette’s new US$39m continuous press line at its Clonmel factory in Ireland will not add to Willamette’s output when it opens in June 2002 and is unlikely to add greatly to the company’s output in 2003. The continuous press line will ultimately replace the present multi-daylight plant at Clonmel.
