The ongoing crisis in gas and raw material prices continues to disrupt businesses across Europe, with significant repercussions for the wood-furniture sector. Within this industry, companies specialising in wood panels are particularly affected, as energy and material costs put production and competitiveness under severe strain. The price of methanol, a key component in panel production, has surged by 40% over the past three to four months, intensifying the financial pressure.
Paolo Fantoni, President of Assopannelli under FederlegnoArredo, warned that margins are being squeezed further by declining demand. He cautioned, 'In the first quarter of 2025, methanol prices could reach €700 per tonne.' FederlegnoArredo has called for the wood panel industry to be recognised as an energy-intensive sector, akin to ceramics, steel, and chemicals. This classification would provide access to vital support measures to weather the crisis and safeguard competitiveness in an increasingly challenging landscape.
Across Europe, energy market tensions have worsened. Limited renewable energy production, particularly from solar and wind sources, caused a sharp rise in electricity prices in December. In Italy, prices reached €180/MWh on 11 December, while in Germany they ranged between €415 and €630/MWh the following day. Even France, with its reliance on nuclear power, saw elevated energy costs. Adding to the pressure, European gas storage levels fell to 72% by the end of December 2024, well below the five-year average.
The stability of Europe's gas market in 2025 depends heavily on liquefied natural gas (LNG) supplies, influenced by demand from Asia, and the availability of alternative routes for Russian gas to Eastern Europe following the suspension of flows through Ukraine.
In response, Italy and Germany are pursuing a joint strategy to address the crisis. Italy's Minister for the Environment and Energy Security emphasised the urgency of protecting citizens and businesses from potential price hikes. The proposed plan includes a new cap on gas prices and separating gas prices from electricity prices. He remarked, 'The production systems of both countries are similar. It is essential to reduce energy costs and establish protections against speculation.' He also referred to Italian and German manufacturing industries as 'twin industries,' highlighting their shared challenges as Europe's leading producers.
The collaboration between Italy and Germany underscores the necessity of coordinated action to mitigate the effects of the energy crisis and sustain competitiveness in key sectors like wood-furniture manufacturing.
Source: LinkedIn.