The Wood Panel market is asking about three things, Rise of Import, Sluggish Demand, and Timber Availability. On the imports front, things are straight forward. The Sea freights have come down, international demand across globe is struggling bringing down material prices too. It will continue to be under pressure so arrival of cheap imports in MDF, PB and even FURNITURE products are back. This will add to supplies in India and will create a pressure in domestic markets impacting two years stability and margins. But one has to remember that India is consuming well and that is why there is supply.
On timber availability front, the struggle continues everywhere. Now panel industry is bringing timber from where ever available to where ever required. It’s a matter of freight cost and Purchase power. Regional favour will be here for another year after that slowly timber availability will resume.
On timber availability front, the struggle continues everywhere. Now panel industry is bringing timber from where ever available to where ever required. It’s a matter of freight cost and Purchase power. Regional favour will be here for another year after that slowly timber availability will resume but it will continue to pose problematic led by upcoming MDF and Particle Board plants till sufficient plantation does not add up.
People always seek solution to most discussed problems and the smart leaders find ways to such puzzles much before others. Why to deny if timber scarcity is here, why not to contribute with solution and start plantation. Sadly our wood panel industry is talking about it since past two years but has not done much. Timber scarcity will persist and will continue to haunt until most of the industry stakeholder contribute to plantation drives. By October 2023, i see a little hope from Punjab side but consumption by new plants will continue to suffocate the supply chain for a couple of more years before plantations becomes engrained among industry wood industry DNA as well as plant growers
On demand side, it is Sluggish but I also believe that Capacity expansion and demand sluggishness must be seen from clear lenses. The comparison of demand must not be compared with when it was all time high during Covid.Because it was driven by pent up demand and fear. Now pendency is over, imports are back, raw material prices are stable means supplies and earning habits have grown much more than normal demand. One must not expect that RULES of economics are wrong, If supplies have grown by double and market is not growing on same rate, there will be sluggishness.
Demand is slow but not for those who are consistent, focused and expanding in measured manner. In last issue too, I insisted my firm belief in INDIA growth story and the growth path will continue.The wood panel consumptions are growing and will continue to grow in double digits. The question is on profitability, efficiency utilisation and individual brands growth and that will remain under question because it varies company to company, individual to individual and leader to leader. One can see this clearly between organised and unorganised growth now. The decisions taken must not be on the basis of competitor; in fact it shall be taken considering fact checks. I believe growth is happening but it is going to vary from company to company. Where are you positioned, It is only your choices..
Pragat Dvivedi
Founder Editor
Mail to “dpragat@gmail.com”, ( M) 9310612991.