Fiberboard Prices Explained

Fiberboard price trends faced challenges as export rates in the U.S. and Europe declined due to subdued demand. Additionally, the global downturn in the real estate industry restricted the expansion of the plywood market, affecting fiberboard prices.

The demand for fiberboard in various furniture applications comes from consumers’ increased inclination for branded and easily maintained furniture. For instance, domestic home furnishings account for 65% of the global furniture business, with office furniture coming in at 15% and hotels and other sectors accounting for the remaining 20%.

Why are fiberboard prices fluctuating?

1. Supply Chain Disruption

Fiberboard or medium-density fiberboard is an internationally traded commodity and such events like trade disputes, geopolitical conflicts, or pandemics have the potential to interrupt its supply chain and prices.

For instance, the security issue in the Red Sea caused rising freight rates as merchant vessels were rerouted to longer passageways for safety purposes. As a result, it triggered increases in the commodity’s final market value.

2. Commercial Application

Generally, commercial applications frequently require customization and compliance to specified standards and this calls for extra procedures or the use of special medium-density fiberboard materials.

These factors drive up production costs, which in turn drives up fiberboard pricing. For example, a leading Russian manufacturer of wood processing, Kastamonu, debuted new designs for its Evogloss line of medium-density fiberboards. Evogloss panels are a necessary decorative feature for walls in a variety of living areas, such as bedrooms, baths, kitchens, and common areas.

3. Global Economic Conditions

Since medium-density fiberboard is traded internationally, its availability and price are impacted by both general global economic trends and local economic circumstances.

Global economic conditions and worldwide construction projects have a significant impact on fiberboard prices and demand. For instance, the COVID-19 outbreak’s impacts caused the country’s furniture business to decline during the previous years. However, two years after, the furniture business started to recover again, signaling positive notes on fiberboard prices.

4. Shipping Costs

Its import and export variations directly impact shipping and freight costs as expenses may rise in response to an increase in the commodity’s demand while they may fall in response to a decline in export need.

For instance, a medium-density fiberboard imported from Austria is more expensive than the ones made from Vietnam. Overall, these fiberboard price variations are attributed to factors such as product quality, shipping expenses, tariffs, and other trade-related costs.

Which variables impact the price of fiberboard?

• Supply Chain Disruption
• Commercial Application
• Global Economic Condition
• Shipping and Freight Costs
• Government Initiatives
• Demand from Residential Sector

Where does fiberboard come from?

Medium-density fiberboard is a composite wood panel product that is made by converting leftover hardwood or softwood shavings into wood fibers with the aid of a defibrillator.

These fibers are mixed with wax and a resin binder and heated to a high temperature to form them into panels. Additionally, it is an engineered wood product that is meticulously made using a multi-step process that combines resin, wax, and wood fibers. Here is a general overview of the medium-density fiberboard manufacturing process:

1. Raw Material Preparation – Wood fiber from both softwoods and hardwoods is the main raw material used to make a medium-density fiberboard. The wood is cut into smaller pieces once the bark is removed.

2. Fiber Refining – Refinement is the process of reducing wood chip particles to smaller fibers. To accomplish this, thermomechanical techniques using steam treatment or mechanical techniques including the use of a disc refiner are used.

3. Drying – After refining, the wood fibers are dried to remove moisture content; a large rotary drier is typically used for this operation.

4. Resin Application – Then, the wood fibers are mixed with a resin binder; urea-formaldehyde or melamine-formaldehyde resins are popular binders. This application guarantees a strong binding during the remaining stages of the production process.

5. Forming Mat – Next, a forming line or conveyor belt is used to shape the resin-coated wood fibers into a mat. To ensure uniform strength in every direction, the fiber orientation is usually randomized.

6. Hot Pressing – The mat is subjected to high pressure and temperature in a hot press. Also, by activating the resin with heat and pressure, the fibers are effectively bonded together, and the resin cures. Additionally, the hot press is utilized to attain the preferred thickness of the medium-density fiberboard panel.

7. Cooling – After the hot pressing, the fiberboard panels are cooled down to set the resin and harden the board.

8. Sanding and Finishing – Then, they are sanded to produce a smooth surface.

9. Quality Control – The finished medium-density fiberboard boards undergo quality control checks to ensure they meet specified standards for density, thickness, and other physical properties.

What are the uses of fiberboard?

Medium-density fiberboard is more affordable and has a higher density than plywood. Thus, these qualities make it an excellent substitute material for applications where great impact resistance and moisture resistance are not necessary.

Additionally, it finds widespread use in the construction of furniture cabinetry and as the foundation for wood flooring. Here are some of the industrial uses of fiberboard:

1. Furniture – It is a common material used to make numerous furniture pieces, providing a more affordable option than real wood furniture. Moreover, it makes molding, painting, and cutting procedures easier.

2. Sound-proofing -It is an excellent material for speaker boxes and other sound equipment due to its density and acoustic properties. Its characteristics minimize impact, which improves sound quality.

3. Cabinetry – Fiberboard is frequently used in interior carpentry applications to build storage units, kitchen cabinets, and other cabinetry projects. Furthermore, it’s suitable for lamination or veneering to achieve a more refined and finished appearance.

4. Decorative Molding – It’s a great material for ornamental molding because of its smooth surface, which can be painted or finished to match a range of interior design styles.

5. Fire Resistance – Some medium-density fiberboard boards are designed to offer fire resistance, making them suitable for use in construction where fire safety is a concern.

What is the future price of fiberboard?

Fiberboard applications are becoming popular in China as the nation’s significant developments in residential and commercial buildings continuously grow.

Additionally, population growth in countries like Brazil, China, India, and the United States has increased demand for public infrastructure and housing, thus having a favorable effect on the industry in the upcoming years. This growing need highlights the importance of fiberboard in supplying the building and infrastructure development demands resulting from population increase and economic expansion.

The shifting demand from plywood to MDF (medium-density fiberboard) and the increasing usage of wood flooring in housing and office constructions due to its cost-effectiveness and moisture-resistant properties contribute to its marketability.

Thus, the price of fiberboard will be $789.65 per cubic meter in 2027 and its global market is forecasted to grow from 113.09 million cubic meters in 2023 to 136.34 million cubic meters by 2028, at a CAGR of 3.81%.