Decorative laminate market is witnessing a drop in prices of liner grade laminates during November. Last few weeks have seen a correction of 5-8% in liner grade. Other different thicknesses are also under pressure but prices are stable. Industry reasons for the easing prices in liner grade attributed by drop in lifting and moderation in few raw materials. As reported by the PLY REPORTER liner prices reduced to Rs 300-350 bracket for retailers. It is to be noted that manufacturers were making efforts to increase the prices due to rising input cost during June - July 2023.
Since Liner grade laminate are major driving category in HPL manufacturing capacity growth in India, the fluctuation and weak demand generate weak sentiments. Approximately 50 percent share of the total HPL manufacturing comes from 0.6 - 0.7 mm thicknesses that is used in balancing or as a backer (inside of the panels where designer sheet is pasted on the top surface) in India. The trend of softening prices in laminate is continued with softening of liner prices. Earlier the delivered liner prices were hovering in range of 325-375 per sheetin the dealers market.
The cause behind the drop is being seen as an impact of oversupply and high inventories at various factories and weaker lifting in the markets. Although it is a temporary phenomenon because of markets normally become silent for a month and half after Deepawali and during marriage season. Asthe Ply Reporter had predicted, we see the situation getting better in December and improved further in January. The inventories in various factories are still reported to be on higher-than-normal levels leading to distress selling in liner laminates.
The scenario was not only in liner but also in other segments of laminates such as 0.92 mm and 0.8mm. People are now selling their inventories to create a balance. It is expected that once inventories come under control, liner prices will be back to the range of 350. Currently, raw material prices are stable. It is reported that 7 lakh sheets per day laminate are produced in India whereas consumption during Deepawali, it was reduced to 3.50 lakh sheets per day.