The imports in MDF has witnessed a decline for the first time after a spell of 5 years. During 2016-17 the total import of MDF has been 560.31 crore which is 6 percent lesser than last year.The steady capacity addition in MDF segment at domestic level has impacted the import. So far Indian MDF market is able to accommodate overseas material due to price gap and excess availability in international market, but entry of large groups in India will change the scenario. According to DGCI&S data MDF imports had grown by 14 % last year (2015-16) worth Rs. 593.94 crores compared to previous and except year 2014-15, the MDF import shown a decent growth year on year during last 10 years but in the year 2016-17 it had dropped by 6%.
There is a capacity addition of MDF manufacturing in India in tune to around 3000 cbm a day by players like Action Tesa, Green Panelmax etc.The biggies have been commissioning new production lines where as Century ply has started its commercial production at Hoshiarpur Punjab at its 600 cubic meter capacity per day plant. Machinery suppliers hint for another 2 to 3 new plants in North and South India by next year. It is noted that apart from Century Plyboards MDF plant in Punjab, two other MDF line also going to commence its production by this year in North India.
Growing domestic production capacity has played an important role in drop in demand of imported MDF. The Ply Reporter findings reveal ‘with further plans of new additions in MDF capacity the import is expected to see a further decline hints market expert in the country’. It is due to many leading players are coming into the field sighting the demand in near future. There is anti-dumping duty on imported MDF to promote the domestic industry and with huge capacity jump in next six to nine months there will be tremendous pressure on importers. Earlier the import was happening from many countries till 2015-16 and it was helping import growth but with rationalizing prices in India and easier supply, imports will be further impacted.
It is proven that MDF is a suitable all-rounder substrate for multiple applications in readymade furniture, routing, and other surfacing requirements as well as in consumer appliance such as Photo frames, Shoe heels, Gift box, Grills, Routed tops, Wall paneling etc.