20 | Sector Market Update: MDF
SUMMARY
■UK demand for MDF is satisfactory ■Industrial customers are busy but the distribution and DIY sectors are quieter
■The three bank holidays in May dented trading
■Prices are falling because European producers have high volumes
■Residue costs are likely to rise as sawmills reduce production
EUROPE SETS MOOD FOR UK MDF MARKET
UK demand for MDF is holding up but Europe’s situation is the bigger influence on the market. Keren Fallwell reports
In April, when Irish state forester Coillte, which produces MEDITE MDF and SMARTPLY OSB, announced its 2022 financial results, chief executive Imelda Hurley reflected on a strong performance in 2022 but warned that 2023 would be more challenging. “When I look to 2023 and our experience
so far, there is no doubt that the business is seeing the effects of inflation and rising interest rates,” she said. “These headwinds indicate challenging trading conditions and weaker consumer demand in 2023.” And while the impacts of inflation and rising interest rates – and hence the increasing cost of living – are on everybody’s minds, UK demand for MDF is holding its head above water for the moment. TTJ’s contacts described demand for raw MDF across a spectrum from “alright” to “OK but not brilliant”, to “very, very good”. But while perceptions of demand may vary to some degree, there is agreement that industrial MDF users are doing well but business has quietened in the traditional distribution merchanting sector. “It’s a mixed picture from my customers – some are busy but others, mainly distribution and DIY, are quieter, but that might be a reflection of the good weather and people spending time outside,” one contact said. Another contact said the top end of the kitchens, bathrooms and furniture market is relatively unscathed but, as one might expect, it is the middle to lower end of the market feeling the economic pinch.
Above: MDF profile manufacturing at James Donaldson TTJ | July/August 2023 |
www.ttjonline.com
The dip in demand may also in part be a consequence of the multiple bank holidays
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