The price in hardwood plywood segment is rising sharply thus hinting at future tightness in plywood supply in hardwood category in world market. The impact on Indian market is also visible with the increase in prices of 18 mm Keruing plywood and 2.5 mm thin base plywood.
Export prices of Indonesian plywood continue to climb with no sign of coming down or reduction. According to reports the prices of 2.5mm thin panel have further rose to around 1,000 $ per cbm C&F compared to 45 days back prices of 800-850 $ level. This price of 1000 US dollar per cbm is a record price level for the plywood. The prices are rising due to scarcity of logs due to tightening control of illegal log felling and difficult weather conditions.
In Indonesia as well as in Malaysia, the log availability has reduced by almost 40-45 percent because of low log production. The demand of timber and supply orders of plywood is not matching that is pushing the prices of finished product every week.
The factories are reportedly not taking new orders for high quality grade as they are unable to fulfil the past orders already, explained timber and panel supply agent based in Malaysia.
If we look at the prices a year back, the prices in hardwood plywood has gone up by 30-35 percent. The 4mm plywood prices were about US$650 per cbm is now ranging at 800 whereas 2.5mm panel prices which were at 750$ approximately are crossing 1000 $ now in 2018. The impact of these prices is already visible on decorative plywood price which are increased by 7 percent in domestic market due to price rise of base ply.