In June, prices for wood-based panels in Russia decreased by 1.6% on the average

Jul 14, 2009. /Lesprom Network/. In June, prices for wood-based panels in Russia decreased by 1.6% on the average, according to the Analytic Service of Lesprom Network. Average price of wood fiberboard (1st grade, trade and construction code 40) decreased by 4.6% in June compared to May. Price of OSB-3 gained 0.7%; MDF was 0.2% less than in May. One cubic meter of wood particleboard (1st grade) cost 1% less than in the previous month; price of one cubic meter of laminated wood particleboard (1st grade) decreased by 0.9% compared to May. Water-proof plywood of standard 1525*1525*18 format (II/II grade, birch) lost 1.2% in price. One cubic meter of plywood of 1525*1525*21 format (III/IV grade, birch) was 1% cheaper than in May. Prices for all wood-based panels may vary depending on procurement volume and delivery conditions. Wood particleboard sector was stable this month. Producers note high demand for surfaced wood particleboard. Price for laminated wood particleboard continued to decrease, which is accounted for the seasonal factor: during the summer demand for this panel grade falls, which in turn leads to decrease of prices with a number of producers. It is expected that this situation will remain till late August. Plywood demand is stable during the summer. Producers relate this to construction high season and increase of private house building. A number of companies, however, are in a complicated position; a number of plants may soon change ownership or run through bankruptcy procedure. Situation in the MDF sector in June was similar to that of May. Price continued to slide due to lack of demand and curtailment of furniture production output. Demand for OSB-3 amid construction season is quite steady. However, there are numerous examples of replacement of OSB with plywood in order to cut ready product costs, as plywood price is considerably lower. Demand for wood fiberboard was poor, which resulted in price decrease. A number of companies producing this panel grade were facing financial difficulties. Analytic Department of Lesprom Network specializes in forest industry market research. The department gathers statistic data on timber processing and pulp & paper companies. Among Lesprom Network clients are largest Russian and foreign timber industry and investment companies.