The largest hub for Plywood Manufacturing Yamunanagar has witnessed the roaring prices of Poplar timber in March month. The industry has reported the all time high Poplar timber prices at Rs 1700 per quintal that has disturbed the entire calculation of input cost of making Plywood. Yamunanagar Plywood Industry has been expecting the easing prices of timber in 2024 but the waiting period seems longer.
The key reason is said to the Red sea crisis that has led to sudden disruption in wood pulp import hitting paper industry hard. The paper industry is procuring timber locally thus taking timber prices jumping to all time high mark. The Houthi attacks have forced the shipping companies to divert the routes thus taking longer time and shortage of pulp for paper industry. The other reason has been wheat harvest season leading to reduced cutting activities at farms. Industry sources say that the increasing trend of Poplar timber prices are beyond their expectation in March month that has forced producers to reduce their capacity utilisation. Industry says that the north India Plywood market has been receiving imported Plywood materials from Nepal and Vietnam at very cheaper prices that is beyond the cost of their input prices.
Industry feels that the extension of QCO implementation of Plywood for years is another hit to North India based Plywood Industry because it has led to cheap import of material which is eating their market although imported materials are lightweight and inferior quality. Industry seeks to safeguard from cheap imports to save domestic Industry.
North India based Plywood producer’s view that the year 2024 would be the tough year for Plywood Industry; however, they are expecting the good arrival of Poplar timber by next year. As per report, North India based Plywood industry is forced to utilize their below 50% capacity and their survival becomes tough in present time.