Pallet alert as timber prices continue to rise
March 29th 2010

The Timber Packaging & Pallet Confederation (TIMCON) says rising prices of timber to the pallet and packaging industry need not affect availability if customers plan well with their suppliers.

TIMCON alerted the market on 2 February 2010 that timber prices to the pallet and packaging industry were increasing at an accelerating rate, since when the situation has intensified both in the UK and in Europe.

The Federation of European Wooden Pallet and Packaging Manufacturers (FEFPEB) issued a statement on 15 March 2010, highlighting the significant increases in timber prices across Europe.

Timber prices continue to rise from UK sources, a fact of critical importance to the pallet industry. Meanwhile, imported timber for the packaging sector has increased substantially due to market factors and increasing shipping and unfavourable exchange rates.

Extremely high price increases on plywood from both China and Russia, as well as increases on other sheet materials, including OSB (oriented strand board) are being incurred.

Manufacturers of timber pallets and packaging are monitoring the situation and are endeavouring to source materials on the best available terms, to allow them to maintain continuity of supply to their customers.

Timber supply is extremely tight due to weather conditions in the UK and the Baltics, while supplies from Chile may be disrupted due to the recent earthquakes.

Other factors such as increasing demand for logs from the renewable energy sector and reduced capacity from sources such as the Baltics and Scandinavia are conspiring to make sourcing on best economic terms extremely difficult.

Stuart Hex, TIMCON secretariat said: “It is clear that sourcing adequate supplies of timber and adjusting selling prices to reflect the latest commercial situation will be challenging in the short term but TIMCON members are confident that uninterrupted supply can be achieved provided that customers engage in dialogue and planning with their suppliers at an early stage.”

More articles from Timcon: