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The price of timber bound for the UK pallet and packaging industry is rising on a monthly basis, the Timber Packaging and Pallet Confederation, Timcon, has warned.

The trade association said there was a lack of supply across Europe, but demand remained high.

In continental Europe some pallet factories have not been operating at normal capacity because of the shortages. As a result, prices have increased by up to 50%.

This has had a knock-on affect in the UK, which relies heavily on the Baltic states, Scandinavia and Russia for supplies. Shipments from these sources are being diverted to continental Europe, and UK timber stocks have hit a seasonal low, said Timcon.

Price increases of more than 35% have been reported for standard sizes in the UK and show no sign of stabilising.