world news - 24.02.2004

Timber Packaging Pricing on the Rise

The UK is witnessing its first significant increase in timber packaging and pallet prices for more than 10 years as a result of increased raw material costs and higher demand for timber from a number of other high timber consuming sectors.

The increase has been fuelled by a range of external factors affecting the supply of timber from Baltic States, such as adverse weather conditions and the shortage of softwood logs, as well as wood being diverted to other industries, such as the buoyant construction sector.

With interest rates remain relatively stable within the UK, the wood packaging and pallet industry is facing continued supply uncertainty, as there appears to be no likely reduction in demand from the construction market at a time when access to forestry is notoriously difficult whilst the fencing sector begins preparation for its traditionally busy spring period.

Recognition of this situation has been confirmed by the "Chartered Institute of Purchasing and Supply"; whose December 2003 "Reports on Manufacturing" specifically identified wooden pallets as an item highlighted by buyers as being "up in price" for the fourth month in succession.

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