ne 6-rd levels

f T S PARTICLEBOARD and medium density fiberlL,/ board demand rebounded to near record levels last year, according to a new report by the Composite Panel Association.

In 1996, the combined particleboard and MDF industry shipped 5.57 billion sq. ft. (nsn) 3/4" basis, 5Vo more than in 1995 and second only to 1994's record 5.79 ssp.

Particleboard shipments rose 4Vo to 4.37 nsr, while MDF shipments were upby 8.5Vo to 1.20 ssr.

"Notwithstanding concerns about excess capacity, 7996 was another robust year for PB/MDF production and shipments by U.S. manufacturers," said CPA president Rich Margosian. "The rebound in MDF shipments after a decline in 1995 is especially encouraging and confirms the increasingly diverse use of MDF in the marketplace. At the same time, increases in particleboard shipments remained steady and strong last year."

The increase recovered more than 50Vo of the 1994-95 loss, and was the fourth increase during the past five years.

Yet the gap between U.S. particleboard capacity and

U.S. PB/MDF Capacity vs. Shipments

shipments continued to widen, with particleboard producers shipping last year at a rate of 88.67o of their production capacity.

At 3.51 rsr, particleboard industrial shipments in 1996 were 200 million sq. ft. (rvrusn) higher than in 1995. This 6Vo increase expanded the industrial board share of total particleboard shipments to 8O.4Vo from 1995's 78.87o.

1996 U.S. Particleboard Shipments

1996 Particleboard Markets

For MDF, the gap between shipments and capacity widened to nearly 240 rr.rrrasn (compared to less than 20 rravsF of unused capacity in 1994). MDF producers in the U.S. shipped at a level of 83.4Vo of their annual production capacity last year.

While particleboard exports rebounded somewhat in 1996 by posting an l87o increase, a sharp decrease in MDF exports of nearly 407o brought total exports down to 314 MMSF. Imports also decreased for the first time in five years, falling by 33 rrarrasr to a combined total of 778 urrasr.

In 1996, the average price (F.O.B. Mill) for particleboard fell to $287lthousand sq. ft. (rr,rsr), a drop of $l9/r'rsr from 1995's record $306/vsr. The average price of MDF fell $55hrsn to $387/vse from 1995's record $442lrvrsp.

Story at a Glance

After unexpected drop in 1995, particle-

The largest downstream market category for both particleboard and MDF was household furniture, accounting for more than one out of every five panels shipped.

The top five particleboard downstream market categories were: wood and metal household furniture (2O.5Ea), custom laminators (17 .2Vo), stocking distributors (l 5.1 Vo), kitchen and bath manufacturers (14.67o), and flooring products (lO.4Vo), together accounting for l57o of all particleboard shipments and paralleling the downstream market breakdown of U.S./Canada shipments in 1995.

1996 MDF Markets

The top five MDF downstream markets in 1996 were: wood and metal household furniture (27 .3Vo), stocking distributors (l8.3%o), custom laminators (l2.8%o), others not elsewhere classified (8.9Vo), and moulding (7.67o), also together representing 757o of MDF shipments and mirroring 1995's U.S./Canada combined figures.

- Copies of the "1996 U.S. Annual Shipments Report and Downstream Market Survey" are free from the Composite Panel Association, 18928 Premiere Court, Gaithersburg, Md. 20879; ( 30 I ) 670-0604 ; Fax 30 I -840- t