Reports from Russia plywood industry suggested that 'Birch Plywood prices' have reduced by 10 to 13 % because the demand has slumped down in international market. The downward trend in Birch plywood prices began quite ago during Nov - Dec 2018. The Russian plywood manufacturers found themselves facing a slump in deliveries of laminated boards to Turkey due to global conflicts and slowing economy.
The desired effect on prices did not show up though big volumes largely remained absent. However the demand stagnated and volumes decreased in other core markets of Europe and overseas that hit the birch plywood manufacturers further. Post March 2019, the pressure build up led to price softening as majority of Russian units continued production. As a result, there was a huge buildup of stocks of finished products in many of the factories leading spiral down prices in tune to 15 % . After some initial orders of big volumes on cheaper prices the inventories came down and the prices stabilized at 10 % lower value compared to same time previous tear during April - May.
This phase has caused extreme pressure to prices that has spread to other assortments.The reduction in priceshave also caused a great deal of uncertainty and fear of stock devaluation amongst central European birch - plywood importers on the contrary Indian buyer of Birch plywood have taken the advantage and have placed significant volumes to gain out of the scenario. On the other side, many Russian plywood manufacturing companies are also trying to expand their market in India, and looking for good suppliers. They say that India is very good market for plywood consumption, hence they see more potential of their product in India.
Birch plywood is increasingly getting popular among Indian buyers because of its perfectly calibrated property, uniformity at every layer and quality levels of European standard. Importers of Birch plywood who have been consistently working for the marketing of this product in their targeted pockets are reportedly successful in getting orders from good retail counters. The retailers, who are selling their products through architects, designers and big OEMs do find Birch plywood buyers because of its genuine quality properties.
The Ply Reporter finds the presence of Birch - Plywood at every good retail counters in metro, tier 1 and tier 2 cities. Retailers explained that they earn reasonable margin in birch plywood because of its look, birch wood, no core gap and no thickness variation features. Besides, this product is made in Europe, hence it is easy to convince premium class customers and their designers. Importers present Birch Plywood as the best plywood, having all adequate feature of genuine plywood, hence it is equivalent to the branded segment products. The price reduction has presented an opportunity to make this product reach to deeper pockets of Indian market feels importers of Birch plywood.