24/08/2010 /  Seasons Influence the Sales of Pallet Blanks

In planning the sales of pallet blanks for September 2010, some pallet manufacturers in Western Europe acknowledge excess goods stockpiled in their warehouses, and they recognise bad sales, the main reason for which being a negative influence of the vacation season. Consequently, during this period manufacturers of wooden pallets have reduced the purchase volumes of pallet blanks. A recovered market activity is expected in the second half of September.

Andrius Zimnickas, the director of UAB Juodeliai, admits that the sales capacity of pallet blanks is seasonally adjusted, and such market trends of wooden pallets have been recorded over the years. Large pallets blank manufacturing companies adapt to such seasonal factors, and maintain stable levels of production and sales. That allows UAB Juodeliai sell all their output without considerable difficulty.

16/08/2010 /  The Storm has Caused Damage to the Lithuanian Wood Industry

It is estimated that the storm that raged in Lithuania on 8 August 2010 has caused the damage of around LTL 17 million to the forests of the country. In state forests alone, more than 360,000 sq.m of timber was uprooted and broken. Due to record heat in Lithuania, there is a high risk of the spread of coniferous trunks pests in the broken and uprooted trees. The quality of timber will soon deteriorate and therefore, urgent actions to eliminate the consequences of the storm are necessary.

The wood processing industry, including the companies that have wood pallets and pallet blanks among their products, will feel the consequences of the storm during the nearest period of purchasing raw timber. If the uprooted trees are urgently preserved, the amount of this timber will supplement the supply of raw timber. On the other hand, if the uprooted trees are lost, higher prices can be expected due to potentially lower amount of timber.

Wood processors are in obscurity as they cannot foresee, whether they will be able to maintain efficient production. The situation is facilitated only by the efforts of the Directorate General of State Forests, due to which all timber preparation works are concentrated in the regions that suffered most damage during the storm. It ensures continuous supply of raw material. The main uncertainty is related to the private forests, as their landowners do not provide the information about the planned actions to eliminate the consequences of the storm.

03/08/2010 /  Raw material shortage in wood processing industry

In the second half of 2010, Lithuanian wood processors, including manufacturers of wooden pallet blanks, are short of roundwood raw material. A big part of domestic roundwood is bought and exported by the buyers from other EU countries who offer higher price in roundwood competitive tenders. Lithuanian wood processors’ interests in raw material regarding EU applied rules are not protected.

In the first quarter of 2010, Lithuanian roundwood export has increased by 65.63%, compared to the same period of 2009. The increased demand for wood from abroad raises raw material price for Lithuanian wood processors. Some of the wood processors buy roundwood from neighboring Belarus, Russia, or Ukraine; however, transportation costs also increase raw material price significantly.

Information is based on the newspaper “Verslo Žinios”.

27/07/2010 /  The performance of UAB Juodeliai shows the tendency of growth

The management of UAB Juodeliai, one of the largest wooden pallet blanks manufacturers in the Baltic States, is pleased with the tendentious betterment of the company’s performance. The company has renewed the production facilities to increase the production volume of wood processing and timber products, and to ensure high quality of pallet blanks (pallet components). This allowed increasing the number of clients and ensured the sales of all manufactured wood products, including wooden pallets (i.e. euro pallets, CP pallets, and disposable pallets).

Comparing the performance of the first half of 2009 and 2010, the number of manufactured wood products has increased from approximately 20,000 m3 to 30,000 m3, while the turnover has increased almost twice as much. Considering the market situation, it is being estimated that in 2010, the performance will be significantly better than in 2009. The best performance is expected over 16 years of UAB Juodeliai existence.

07/07/2010 /  The Increase in Raw Material Prices Influence the Increase in Wood Production Prices

After the clarification of round wood sales prices of the second half-year of 2010, wood processors have rushed to revise and adjust the prices of wood products. This led to the increase of prices of all wood products manufactured in Lithuania, including the production of wood pallet and pallet blank manufacturers’ sector. For example, the price of pallet elements’ raw material has increased about 25% compared with the prices of the first half of this year.

According to A. Zimnickas, the Director of UAB Juodeliai, such an increase in raw material prices has strongly influenced the realization of the company’s production to foreign and local markets. Not to suffer the loss due to raw material price increase, the manufacturers of wood pallet blanks had to raise the production prices accordingly. However, not all manufacturers of wood pallets have agreed to raise the prices that would offset high price increase of raw material, and some of them agreed to do so within the next 2-3 months by gradually increasing the price of pallet blanks each month. Many buyers gave reasons for the fact that the prices in wood pallet realization market have settled for quite some time, and that the next change in wood pallet prices is expected in autumn.