The tepid growth in demand for panel products is worrisome and pushing out weak manufacturing establishments out of business. Although the month of December, 2019 brought smiles to plywood and laminate producers and traders. According to market reports, lifting and payment both have improved though a little marginally. The organized plywood and laminate brands are working very hard to achieve growth in 3rd quarter of this financial year because the last 6 months have not been favorable for company estimates. To maintain the growth tally in 3rd quarter of FY 19-20, bigger sized plants are trying hard to mop up maximum reach as they realized the ongoing slowdown scenario affecting their numbers.
The mid-sized plywood and laminates companies have reported comparatively positive mood in December month sale. The raw material prices have also been helping the smaller plywood and laminate producers to maintain and float despite of poor market demand. The Block Boards and Doors demand noted a better prospect as supply fell due to winter and slower production in North. The doors industry is also not able to supply properly that created an illusion of demand in north. In southern markets, the door production has been average and in pace with demand. The Film faced plywood lifting got some relief as orders kept pouring from all major states. The government policies have impacted the real estate demand but infrastructure and public service departments are able to offer relief for construction purpose plywood and panel supplies.
The organized companies and brands are yet to declare their 3rd quarter financial results but double digit growth in sales revenues are expected from all product categories players. The month of December also witnessed increased efforts from mid-sized players in plywood because they are feeling pressure on sales and margins both. The softening raw material prices were helping the plywood and laminates companies to recover their profit margins during this period and payment collections were also noted to get better. The stakeholders of wood panel industry and trade were felt comfortable during this period and pray for the same in coming months.