Home » Wood panels, the shortage of urea puts production activity at risk

Wood panels, the shortage of urea puts production activity at risk

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The record increases in gas prices are also making their effects felt on the panel industry, and consequently on the furniture industry, although these are not particularly energy-intensive industrial sectors. To alarm companies are the strong price increases and now also the shortage of urea, a basic component obtained from the condensation of natural gas and which serves as a basis for making the adhesives (such as melamine) necessary for the production of the panels. . “The cost of urea went from $ 250 per ton in August 2020 to $ 650 last September and this was already creating tensions on the market – explains the president of Assopannelli, Paolo Fantoni -. But in the last month the price has reached 900 dollars a ton ».

Production stopped

Furthermore, the main European producers of urea (in the United Kingdom, Ukraine, Croatia and the only one in Italy, the Yara in Ravenna), have temporarily stopped production, precisely due to the increase in gas prices and consequently also the melamine. “For now, panel manufacturers have accepted the increases in order to keep production active and follow up on supply relationships, so as not to create default for our customer furniture companies”, explains Fantoni, who currently does not detect cases of production stoppages. , but points out that many companies are reorganizing their production to cope with the shortage of adhesives. The same Fantoni group has suspended the sale of water-repellent panels, to reserve the melamine available for the melamine-faced panel lines. Alessandro Saviola, president of the panel producing group of the same name, but also owner of Sadepan, which produces adhesives starting from urea, confirms the difficulties. «We had to interrupt the production of adhesives for a few days and consequently also that of the presses for the finishing of the panels with melamine paper, but we have organized ourselves in order to ensure supplies to our historical customers without delays. Unfortunately, we are forced to refuse some orders that are too demanding or requests from occasional customers ».

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Worry about the duration of the situation

What worries the most is the duration of this situation: «For now we are maintaining regular production rates – says Giuseppe Conti, owner of Saib -. But our suppliers have announced the possible quota of materials, so there is a risk that in the next few months we can get to production stops ». A big problem at this time of great market demand. «If the situation were to worsen or last too long it is difficult to say what will happen – admits Paolo Fantoni -. There is a risk of an imbalance between supply and demand that someone in the end will have to pay for ».

The cost of the panels

The cost of the panels has recorded six price increases in the last 12 months, up to a doubling for chipboard panels and + 80% for those in MDF (the most technological models). The price increases are coming down the supply chain and concern is also spreading among furniture manufacturers, already struggling with increases in all raw materials. The panels in fact form the basis for many productions. «Our companies are making an incredible effort not to transfer these extra costs to the final consumer, but the growth trend does not seem to want to stop – observes Maria Porro, president of Assarredo -. In a sector with a strong export vocation, price competitiveness and the ability to respond quickly to demand are key elements and the situation risks compromising both. Our companies are smaller than their competitors and therefore less capacity to absorb price increases ».

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