European Wood-based Panels Will Face A Cold Winter, And Exporters To Europe May Encounter New Opportunities
Oct 25, 2022
According to Martin Brettenthaler, President of the European Plank Federation (EPF) at the 12th International Wood-Based Panel Symposium in 2022, due to multiple challenges such as reduced demand and increased energy and raw material supply costs, Europe's Manufacturers of wood-based panels may face a complicated winter.
Hundreds of representatives from the international wood-based panel industry and technology suppliers gathered in Hamburg at the 12th International Wood-Based Panel Symposium (EPF) on October 13-14 in Hamburg, Germany.
At the meeting, Chairman Martin said that due to soaring energy prices, the production price of resin has also begun to rise sharply. In addition, the industry is facing a "perfect storm" as exports to Europe from Russia and Belarus decrease. He added that the disputes in Ukraine were "game changers" for the industry as a whole, and they exacerbated those effects, though he said it wasn't all the conflict's fault.
At the meeting, Martin criticized the German government's policy of focusing on green energy in recent years, the so-called "energy transition". These policies expose wood-based panels to the accelerated impact of the energy crisis.
“The real problem is not the boycott of Russian gas, but the lack of realistic nuclear and fossil fuel alternatives. We need to increase energy supply, use nuclear power, restart coal-fired power plants instead of importing Canadian shale gas,” Martin said.
Production costs have doubled
Wood-based panels workshop shared statistics showing European MDF (medium density fiberboard) production costs have doubled since 2019.
Demand for wood-based panels in Europe is falling sharply. A major recession is forecast for the industry in the next 6-12 months, with a bleak short-term outlook.
For the wood-based panel market, the processing volume of wood-based panels in Europe will remain sluggish within half a year. For wood-based panelists exporting to Europe, the export volume may increase. At the same time, with the impact of inflation in European countries and rising energy prices, products exported to Europe can maintain a cost advantage.
