Panel demand casualty of poor economy

European manufacturers of wood based panels are concerned about the serious effects of the poor overall economic situation on demand for their products.

Their concern was voiced at the European Panel Federation‘s (EPF) annual general meeting in Stockholm, where moderate growth was reported in MDF and OSB production during 2002 while particleboard consumption fell by 2%.

EPF president Frans De Cock said particleboard production registered flat growth last year and remained at 32.1 million m3. However, exports increased by almost 12%.

The MDF industry set new records, with production growing by 9% to reach 10.5 million m3 and buoyant European demand was reflected by the considerable drop in overall stocks throughout the year. Consumption also rose by 9% to 9.6 million m3 but Mr De Cock reported that MDF producers have recently experienced a decline in orders.

OSB enjoyed the highest growth rates, recording a 31% jump in production to 2.1 million m3 in 2002, while there was a 27% rise in European OSB sales and exports resulting in total European consumption of 1.7 million m3. Mr De Cock said further improvement was needed to reach a healthy balance between supply and demand, in view of manufacturers’ combined 3 million m3 installed capacity.

And he said prospects for the future were “not too bright”. “If this situation continues, we may be witnessing the beginning of a substantial restructuring process in our industry,” he added.

Sign up for our weekly news round-up!

Give your business an edge with our Timber Trades Journal.

Sign up