The long waited price increase in HPL segment is reported to be almost accepted by the entire market. Due to high prices of different raw materials such as chemicals, paper, moulds, electricity, wage etc, the High Pressure laminates industry has been suffering with lesser margin day to day and was trying to pass this cost to market since one year. But the growing supply of materials due to huge capacity build-up is not supporting industry to pass this cost although their profit margins have shrinked to bottom level.
The Decorative Laminate Industry could not pass on the price increase due to housing & interior slow growth. Now after meetings held at Regional levels, a unanimous decision has been reached. Entire Gujarat, North India and South based Industries had voiced support for the price increase and circulated the increased cost to their respective dealers such as 1.0 mm - Rs 45, 0.8 mm - Rs 25, 0.92 mm - Rs 20, 0.72 mm - Rs 20, Door skin - Rs 20 - Rs 30 and Industrial - Rs 20 per mm.
The market reports gathered by Ply Reporter team found that the increased prices are almost accepted at distributors/stockiest level and about to accept at retail counters. There is not much of debate among producers and dealers from this price increase because it was pending since a year, and everyone understands the increasing prices of different raw materials. Meanwhile the reports of further unexpected high jump of prices of phenol and other chemicals has disturbed the entire eco-system of HPL manufacturing and the input cost is posted to jump again by 10 to 15 percent, which is very difficult for producers to absorb and they are looking for further price increase to sustain, although manufacturers have taken preventive measures to cut production and watching the situation closely.