"Prices Should Increase": Timber Association Warns of Hike Due to Rising Fuel Costs

The timber sector, specifically the small and medium-sized enterprises in the forestry industry, finds itself in a complicated situation following the initial assessments after the fuel price increase.

Costs have risen as a result of the increase in fuel prices. From PymeMad, Michel Esquerré explained that it's not just about raising prices to compensate for expenses.

This is because, according to the director of the trade association, the market is much more affected. "If uncertainty rises and markets contract in demand, coupled with the increase in costs, it could be a rather complex storm for small and medium-sized industrial sawmills," he stated.

Timber association warns of hike due to increase in fuel prices

In Esquerré's words, "the price of timber should increase, yes, it has to rise. Let's hope the war is short-lived and this uncertainty about global oil transportation ends, and that the price can drop so that the economy in the area is not further affected."

The director of PymeMad also clarified that this situation is not comparable to what happens with food or other products whose prices rise immediately in these types of contexts.

"With food, the price is passed on to people quickly. It's already seen that the price of flour has risen and is affecting consumers, but in the case of timber products, it is not fast or instantaneous, so it's a sector that is once again hit by another phenomenon, apart from the contraction of international markets and low pulp prices," he specified.

This is because fuels are fundamental in the production process of the sector, considering logging, transportation, sawmills, the use of generators, and then distribution.

On the other hand, from the CChC Concepción, they indicated that the construction sector is not exempt from the negative effects of the fuel price increase due to its impact on transportation costs and the costs of various materials.

"We are monitoring its evolution to gauge its impacts and evaluate possible measures that help mitigate its effects on the activity," they added.

Source: BiobioChile