MDF/HDF Manufacturers Intend to Keep Their Sales Prices at Least Stable

MDF/HDF manufacturers intend to keep their sales prices at least stable in upcoming talks to settle on terms for third-quarter deliveries. They aim to do so even though demand has been subdued in April and May and has resulted in further price cuts for individual grades. A few producers have already raised the prospect of hikes to offset May's strong increase in adhesive costs, although they have yet to firm up the magnitude and timing of these plans. One manufacturer reported plans to charge about ?0/m³ more for HDF grades. These price plans, which so far exceed the proportionate increase in adhesive resin costs, aim to put a stop to the slump in MDF/HDF prices that lasted into May. A number of producers noted that additional price cuts were no longer an option given the resurgence in costs; In fact, price increases were over-due for the very same reason. On the other hand, buyers feel that there is hardly any chance of prices edging higher because of persistently weak demand in Central Europe and the lack of alternative markets abroad. Consequently, it is their intention to leave MDF/HDF prices untouched at the present level for third-quarter deliveries. Source: euwid-wood-products