Particle Boards, MDF and other Timber Products Head for Significant Increase
ON ASEAN front the Wood supply in Malaysia and Thailand remain very critical and prices have increased to historical high level. Glue price continue to increase in view of continued increase in Urea and Methanol prices. Please find below main raw material prices for Glue as summarized below.
The cost increase in the past 3 months have doubled for wood, and more than 30% for Glue. The cost increase is significant. Hence, the price increases will be in quite a significant quantum. The shortages in output have a demand supply mismatch in China and Korea and rates have risen in these countries already.
In addition to the raw material increases the ocean freights are also begun galloping doubling with announcements within April. In the last few weeks all shipping lines have increased their freight rates dramatically.
A big problem is the non-availability of shipping space which is probably also a consequence of the Hanjin bankruptcy. Carriers are re-positioning their strategies with survival in top most agenda.
In April we will have a complete new situation regarding the shipping lines since they will form alliances as follows:
- THE ALLIANCE: “K” Line / Hapag Lloyd / Yang Ming / NYK / MOL
- OCEAN ALLIANCE: CMA CGM / Cosco Shipping / Evergreen / OOCL
- 2M: Maersk Line / Hamburg Sued (has been taken over by Maersk Line) / MSC
Imports from Europe have been the worst affected. The Carriers have implemented a surcharge of minimum USD 1000 per 40’. Besides due to curtailing the schedules to improve the load factor more than 1000 containers are waiting to find shipping space in major European ports.
All suppliers are now busy recalculating the new prices in wake of these circumstances of global effect.
It looks that the year ahead is going to witness steep rises in the commodity material like ParticleBoards and MDF as well as Timber.
The author Mr. Nitin Vaze is a well-known figure in the world of panel products in India and international markets, having been in the business for several decades. His company, Sleek Boards Marketing Services LLP is one of the country’s leaders in marketing a variety of technologically advanced panel products.
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