There is acute shortages of plywood and timber.
Prices of plywood had soared to new highs, largely driven by acute shortages as well as the higher power and fuel costs. Prices of plywood had in fact reached record prices in ringgit terms. Currently, the price is about USD450 which is about RM1,650 per cu. m. The record price for plywood in 1990s was about RM1,500.
The price of glue, diesel and electricity had gone up.
Prices of timber had gone up by 20% and expected to be on the uptrend. It was reported that timber traders have marked up prices by up to 30% across the board for all timber species towards the end of May 2006.
It is believed that it will soar further!
For those contractors who are tendering for new projects, your pricing must take into consideration of the risk associated including the possible hike in price of steel and steel products, aluminium, and all types of roofing materials.
For those contractors who had just secured a new project, or in the early implementation phases, you will have to relook into the project budget and costing and prepare strategic actions to mitigate the risk of losses and failures.