Changing demand patterns from furniture manufacturers are affecting capacity utilisation at North American particleboard and MDF-HDF mills, according to manufacturers, reports Euwid.
Most particleboard mills have been running at 55%-60% of capacity in recent months, while MDF/HDF mills are running at around 70% of capacity. Production is not expected to increase in the short or mid-term, and industry consolidation is expected to rise.
A number of companies are considering the sale part or all of their wood panel operations. Others are reducing production until market conditions improve.
According to Euwid, the higher MDF-HDF rate of capacity utilization is attributed to the furniture industry replacing particleboard with MDF.
