August onwards, we expect a price increase scenario in all product categories due to rise in raw material and compliance cost. Laminate producers have already started ringing the bell and sooner MDF is to witness the same. The large MDF companies who have large volumes witnessing a pressure on volumes as well as margin compression.
Last year, same time my editorial appeal was to get ready for better demand period. In following months market improved and remained better till December, and a similar trend was noticed a year ago as well. Now, its end of July 2025, the markets have responded very well compared to last three months. The beginning of August is expected to bring a better pick up in entire wood panel decorative basket. Over all, timber cost is stable, barring a few fluctuations due to import volatility and Shravan Kawada Yatra. At present, the disruption is coming from the resins and chemicals segment where prices have moved upward substantially. The unavailability of technical grade Urea from reliable source at nominal price is also causing pressure on panel producers especially in MDF category. The Global uncertainties are also causing fluctuation which is indeed a sentiment dampener among producers.
August onwards, we expect a price increase scenario in all product categories due to rise in raw material and compliance cost. Laminate producers have already started ringing the bell and sooner MDF is to witness the same. The large MDF companies who have large volumes witnessing a pressure on volumes as well as margin compression but I believe that too has bottomed out.
On demand front, Metro cities are leading with booming consumption in wood panel space. The popular brand like century ply has created a milestone by touching 1 crore NA (notional area) of plywood in one month. Of course the market is favoring branded and semi branded plywood after import halt and it’s more evident in smaller towns.
The demand in tier 2-3 is growing for all categories. The rise of HD+HMR category MDF is continuing the same pace as before and is certainly reflecting on PF plywood sales as well. The confusion regarding IS 710 w.r.to preservation retention is expected to be cleared in coming month as clarity has reached in CED committee (BIS) meeting. The clarity on decorative veneer’s require ‘base ply’ from import is that ‘once notification is out, veneer producer with valid ‘IS 1328’ license will allowed to import’.
It is my hand folded request to all manufacturers, distributors to spread positivity to infuse confidence because last 2-3 months of dullness often causes unrest among producers of Plywood, MDF, laminate, veneer etc.
MATECIA is timed to provide a great window for all brands that are upbeat, so we offer a great window to future prospects in our conferences especially on India Furniture Conclave and the other focused for retailers is “INDIA INTERIOR RETAIL”. The IIR Conference in this time has numerous engaging and thought provoking topics on Disruption and Distribution, Future in wood panel & trade besides that India Furniture Conclave will present you an opportunity to meet the founders of many ace furniture brands in India who will share their views on the rise of furniture sector in India. Join us and plan to lift up the nation mood with new ideas and connection with industry and designers.
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Pragat Dvivedi
Founder Editor
[Published in Ply Reporter's August 2025 Print Issue]