Timber producers are warning that the price of pallets, pallet collars and pallet collar accessories will continue to rise throughout 2018.
Industry experts predict the price rises, which hit the pallet and pallet collar sector throughout 2017, show no signs of slowing as demand outstrips supplies in many instances.
Prices of raw timber for wood increased by between 3 and 4 percent each quarter leading to an annual figure totalling around 11 % by the end of 2017.
The timber industry organisation TIMCON has reported that the frequency and scale of the increases has caused problems for companies, particularly when servicing rolling contracts.
Although being forced to pass on some increases most suppliers have taken the step to absorb some of the increased cost, further impacting on the already low margins that the industry works on.
Saw mills report that in the first quarter of 2018 the situation is set to worsen in the log market with the added pressure of increased demand from China and the USA.
Billington Group MD, Frank Billington, said:”As the UK’s leading supplier of pallet collars for more than 30 years, we have not seen conditions such as this in all that time.
“Yet despite the market turbulence and currency uncertainty we still manage to give our customers competitive prices.
“We pride ourselves on our relationships with our customers and by absorbing much of the additional costs we have managed to soften the blow of rocketing costs in the timber market.”
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