Growth is expected in MDF due to rise in application of material in surfacing, partition and furniture making. The development work from government departments and PSUs and acceptance of MDF is also going to help the demand boost in the segment. The Particle board category is expected to witness flow of demand from OEM and organized furniture makers due to expected rise in demand for commercial spaces and upbeat mood of entrepreneurs in expanding businesses.
The increasing demand for budget housing and below 40 lacs houses indicating that residential segment customers will be buying more of readymade and cheaper furniture in 2018 hence supporting the demand for bagasse based Particle board segment. In 2018 and thrust on cheaper house building materials products will lead to stable demand in cheap readymade furniture category.
Compared to last year, the office furniture segment in corporate sector is expected to witness faster pace hence supporting the MDF, PB demand in second half of 2018. India’s ‘Office-market’ absorption is expected to pick up pace in 2018 thus helping expanding market for PB-MDF category though prices vs margins may pose a weak area that may trouble the manufacturers.
In Year 2018 The prices of MDF will certainly witness massive correction due to commencement of production from 2500 cbm capacity in the country means a sudden bulge in capacity and hence abundance of MDF in markets. There are high chances that a price war will begin in second half of 2018. The wood based Particle Board segment is also expected to get competitive with a dozen new plants to come up during 2018.