The wood industry can face decline in margins in the coming quarters
13:47
The wood industry in Poland is likely to face persistent cost pressure and much more difficult demand conditions, which could result in a decline in margins, according to Bank Pekao's report. The wood industry experienced a boom last year when aggregated net profit of the sector increased by about 2.5 times compared to 2020 to a record PLN 4.6 billion.
From June, however, there is a clear decline in production dynamics. The availability of the raw material and its price pose the key challenges. Prices for almost all types of wood sold by PGL Lasy Państwowe showed double-digit growth, and in extreme cases jumped more than twice. The record-breaking prices of energy carriers also put pressure.
Wood producers face cost pressure combined with much tougher demand conditions, and as a result, a decrease in margins, the analysts noted.
