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Wood gate fees increase, contrary to WRAP findings

Gate fees for waste wood have increased while board mill prices are reducing, according to the Wood Recyclers Association (WRA).

Despite a recent WRAP report which identified that gate fees had fallen as a result of reduced waste arisings and increasing demand, the WRA has found that gate fees are “generally on the rise” and that board mill prices are “easing downwards”.

The Association believes this is due to a reduced demand for panelboard and biomass during the summer months, which causes an “inevitable” increase in gate fees.

It is also thought that the fire at the Sonae chipboard factory in June has caused a “blockage” of several thousand tonnes a month. This has had the effect of putting upward pressure on gate fees, and led some board mills to “trim” input prices.

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