Pallets and pallet board, news and market analysis
Based on the analysis of various companies, it can be projected that the price for a new EPAL pallet will decline further to €12.80 per unit in December 2023. This is a decrease from November 2023, where the price was €14 per unit. Euro pallet prices have declined by 40% since their peak in May (€23-25 per unit). Although the 18% price reduction from November 2022 is not as significant, it is still noticeable.
It is important to note that production costs, including raw materials, pallet boards, pallet blocks, energy, and wages, are increasing. Any further decrease in prices will directly affect pallet manufacturers.
Some economic analysts believe that the pallet and pallet wood market is a barometer of the economy. In the spring, pallet prices sharply increased due to the conflict in Ukraine and the subsequent cessation of pallet supplies from Russia, Belarus, and partially from Ukraine. However, the current steep decline in prices is considered to be caused by internal factors, such as a decrease in production in almost all sectors of the German industry, particularly related to construction.
Another factor contributing to the decline in pallet prices is the fierce competition in the German pallet market. It is worth noting that Germany is the largest producer of EPAL pallets in Europe, followed by Poland. Ukraine ranks third in European production. German customers are the main customers for Polish pallet manufacturers.
The future development of the pallet market is uncertain. The behavior of the construction industry next year is difficult to predict, but many experts expect a sharp decline in activity in this sector. There is a lack of optimistic information from other sectors of the economy.
However, there are some positive aspects, such as the availability of untreated wood in the German market. The cooling of the economy has resulted in a decrease in demand both from domestic producers and a significant reduction in purchases from China. Another important factor is the fall in prices for lumber in the United States, which has had a significant impact on sales directions and the availability of lumber in the last two years. Currently, pallet manufacturers in Germany have no problems with access to the raw materials and lumber needed for production of Pallets. Unfortunately, it is impossible to predict how long this situation will continue.