North Based MDF Plants are Hit by Steep Timber Cost

person access_time2 28 June 2024

The Eucalyptus timber price for making MDF boards in North India have touched Rs 7500 per ton, which has badly affected the margin of MDF producers in April month. The high timber cost has suffocated the producers because the demand of timber has grown high with commencement of new plants in this region. The producers view that the price rise of MDF is inevitable in this situation to sustain.

According to Ply Reporter estimates North India has added approximately 3000 cubic meters per day production capacity of MDF during Financial Year 2023- 24. Action Tesa and Century Ply have commenced new capacity in this period. Besides Crossbond, Archid Panel, E3 Group, Prominent Fibre and Signature Panel have also started their production in FY 23-24. Four new MDF lines are supposed to start their production this year in Northern India, which are in commissioning stage and about to announce its production.

Although North Based Industry players have been working hard to increase plantation area in their region to meet the timber demand, the recent increase in timber prices indicate the lesser supply of timber to the industry.

Action Tesa, Century Ply and Archit Nuwud have been driving huge plantation drive campaigns in their respective states among farmers. They have created a separate Plantation division and distribute Eucalyptus plant Sapling to farmers. They assure them a good return of their farmland and the demand in future.

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