Weak Demand in India Push Many Face Veneer Units in Gabon to Shut Their Operation

person access_time3 11 March 2020

The abundance of Poplar plantation in Northern India offered an opportunity for plywood manufacturers to produce all core Poplar plywood during last 4 years. At the same time, the plantation supplies also helped the growers, consumers and the markets. The all poplar plywood had reached its bottom price that provided ample of opportunities to traders of different markets in India to sell ‘All poplar Ply’.

Plywood manufacturers based at North India increased their market share further with the success of Spindle less Peeling machines that could give better yield and helped them to pass on the savings. Now the situation seems to be turning opposite due to increase in prices of Poplar logs and thus receding share of ‘all poplar ply’ from India markets.

As per report, the plantation of Polpar had been dropped drastically in last 3-4 years. Growers are not taking much interest in Poplar plantation because they are not getting reasonable prices of their crops. The Poplar Plantation area is also reported to decrease by 80 percent during last 3 years compared to the facts four years ago. There have been numerous cases where farmers are uprooting Poplar plant from their field and shifting to other crops for better return on their cultivation.

The price rise in Poplar is almost double compared to eucalyptus and that has been the trend in past. Certainly the effect of scarcity of Poplar timber is seem to be visible on ply-boards industry, and ‘all poplar plywood’ prices will rise faster compared to alternate. If the gap between poplar and alternate narrows further which will happen eventually, the relevance of all poplar will disappear giving way to alternate market growth.

Experts see that the Poplar timber prices will grow further, and it will be double by end of this year, thus an unviable scenario for plywood manufacturers to continue producing Full-Popular plywood. Manufacturers say that presently it is impossible to offer full-poplar plywood, if the prices are not going up, hence the situation is prevailing the emergence of Alternate plywood once again.

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