Decorative laminate market is witnessing drop trend in prices of liner grade laminates since past few months. Last few weeks have seen a correction of 8-10 % in liner grade. Other different thicknesses are also under pressure but prices are still on the same levels. Industry reasons for the easing prices in liner grade attributed by softening of raw materials which is being passed on in the market. In Liner Laminates, the Kraft paper and resin play an important role in manufacturing cost. The recycled Kraft paper prices are down by 15 % whereas the chemical prices also cooled down now to pre-covid level. Over all cost equation is enabling the laminate producers to bring down prices of liner grade laminates.
The liner laminatemarket has become crowded with low margin product range. Although the rural market is helping liner laminates demand, besides offering of fabric, wooden and different color in liner grade also support its sales because it has been applied on top surface in affordable grade furniture.
It is noted that Liner grade laminate has been an important driver of HPL manufacturing capacity growth in India. Approximately 50 percent share of the total HPL manufacturing comes from 0.6 to 0.7 mm thicknesses that is advised to be used in balancing or as a backer (inside of the panels where designer sheet is pasted on the top surface) in India.
In range based laminates there many things involved including imported papers, tissues, resins quality, quality checks, rejection, folder cost etc who cost are still very high or even increasing. That is why there hardly any passing on in range based laminates, though a few companies have lowered some prices in tune to 15-20 rupees per sheet. The decorative laminate Industry people blame it on huge capacity addition in laminates every year. Ply Reporter estimates that capacity addition of approximately 25- 30 million sheets takes place every year.