A few months ago, the wood fiber market exploded.
As more and more companies started competing to sell fiber, prices went up.
As prices went down, the demand went up, and that pushed prices up further.
Now, that demand is hitting a wall, as prices continue to go up, leaving the wood fibers industry struggling.
In a recent interview with the Wall Street Journal, Wood Fiber Manufacturers and Senders of Wood Fiber (WFMG) president and CEO Andrew Krikorian discussed the industry’s predicament and how it will be possible to address it.
“It is a cyclical thing,” he said.
“There is a lot of stuff going on in the market right now.”
In the early part of the decade, there were fewer fiber suppliers than there were fiber mills.
Today, there are more than 3,000.
“When we look at the price, it is really driven by supply and demand,” Krikorians told WSJ.
“So the price goes up when there is more demand and it goes down when there’s less demand.”
Krikoresons comments came a month after a series of lawsuits against Wood Fiber Manufacturer’s (WFM) suppliers, alleging the companies violated state consumer protection laws by selling their products at artificially low prices.
As a result of these lawsuits, the industry is under intense scrutiny.
“I think it is a bit concerning because the industry has had a pretty bad year in terms of supply,” said Krikoreys in the WSJ interview.
If we do, we could lose some of our customers, which could be really detrimental to the market. “
One of the things that we need to be very careful about is that we don’t see the price of this product rise.
A lot of the industry wants the price to stay at the current level because that is the current market. “
The fact is, we have to balance that supply and that demand.”
A lot of the industry wants the price to stay at the current level because that is the current market.
But that doesn’t mean that the price can’t be raised, said Krakonis.
“If we had an alternative market, it would be very interesting to have it.
We need to see how it goes and see how prices change.”
For now, Krikoras hopes that a solution will be found.
“My hope is that the industry will find a way to work together to find a solution that works for the whole industry,” he told WSJC.
“This is an industry that has been working hard to find solutions to keep costs down.
We don’t need to go back to the days of one supplier and another.
The industry has a lot to look forward to in the future.” “
And there are solutions in the works.
The industry has a lot to look forward to in the future.”
In addition to Wood Fiber’s troubles, other companies are also struggling to compete in the industry.
In December, the U.S. Department of Commerce issued a report that warned that the country could lose more than a billion dollars from the end of 2020.
In response, the National Fibers Association announced a series for its members to find other solutions to help keep prices down.
For the industry, Krakias advice is simple: “We need to work more closely with our suppliers.
Then we have the potential of bringing some new suppliers to the table.”