CHILE (Notifix).- Arauco's panel sales reached US $299 million in the first quarter of this year, an increase of 18.2% against the US $253 million reached during the first quarter 2010. This increase in sales can be explained by higher average prices of 20%, partially offset by lower sales volume of 1.5%. Regarding plywood, sales volume increased 20%, also leading to a recovery in sale prices. The company expects good prospects for plywood for the second half in terms of volume and price increases, given mainly by increased demand from Asia following the earthquake in Japan. Arauco reports that demand from USA remains flat, but prices are giving signs of recovery. Europe is showing a recovery in demand and the strengthening of the euro is helping to improve their dollar return. Sales volume of MDF boards fell 13% mainly due to a decline in Brazil. The company has said it had problems to increase product prices in general due to the aggressive actions in prices of their Latin American competitors. Regarding MDF moldings to the USA, the market remains quite slow and affected by price pressures from the local producers. However Arauco stated that even if it may means temporary reductions in sales volumes, it is leading price increases in the USA due to cost increase an the availability of better sales options of MDF moldings. Sale of HB Cholguán that showed a drop in volume of 8%, had price increases in Latin American markets over the previous year. Due to the increase in costs and the constant additional demand for this product, price increases will continue to occur on an ongoing basis during the year.Arauco, resultados en el primer trimestre