Soaring prices for natural gas and resin are putting the squeeze on North American wood products manufacturers, according to industry newsletter Random Lengths.
The increases, which come on top of big hikes in fuel and freight costs, are being cited as key factors in lower third-quarter earnings.
One veneer manufacturer in western Canada reportedly has a monthly gas bill of US$400,000 – US$150,000 more than five months ago.
Natural gas suppliers claim the price increases are due to record demand and supply disruptions following recent hurricanes in the Gulf of Mexico.
Producers of non-structural panels and OSB report varying prices for resin but the overall trend is up, with one company’s costs jumping by 40% so far this year.
Sluggish markets are preventing companies from passing on the increased costs to customers.
