The timber prices are rising sharply after October this year leading to rise in raw material input for plywood, doors and block boards. The frame as well as core veneer prices have risen by 12% in last one month till writing the news. The prices of poplar have climbed up from 650 to 800 plus per quintal with the drop in temperature.
The Poplar and Safeda prices have gradually climbed with around 15 to 20 percent since August, very much in accordance to rising industrial activities. The core prices have noted an input cost rise in tune to 15 to 20 paisa per square feet, varying thickness and grade.
The core prices are expected to rise further with farmer’s agitation and disturbances on road movements. The cold weather normally restricts the moisture evaporation from the fresh felled logs that increases the moisture content and hence weight of the timber. The moisture impact creates a cost increase of peeling units that also lead to a jump in prices of these raw materials. The price rise in frame and planks is also witnessed in Rampur and Hapur regions hence adding to input cost to Block Boards and Flush doors.
The escalation in core and panel prices has set a price rise pressure mounting upon producers. So far, the unorganized plywood and door sector has announced and implemented 5 % price increase on entire product range where as organized plywood manufacturing sector has increased the prices in tune to 2 to 3 %. The core veneer prices are certainly going to rise furniture in next 2 to 3 months.