Indian Decorative Veneer Industry has been suffering a big shortage of imported 3 mm base plywood even the prices have been touching to 1000 level from the last two months. Veneer Producers confirm the huge shortage of base ply availabilities, that have been affecting the manufacturing of decorative veneer and they are not able to meet the demand. Producers say that the prices of 3mm Gurjan base ply have escalated from 700 to 950 level, whereas hardwood base ply prices have reached to 800 level during the last two months, although there is lesser availability of materials at this price range.
It is noted that Indian Decorative Plywood producers are mainly dependent on import for its Base plywood requirement, which they receive from mainly Indonesia and China. The high ocean freight and lesser availability of Containers have disturbed the supply of imported base plywood mainly of 2.5 mm to 3.5 mm thickness. Reports from Indonesian Plywood mills find the high prices of timber, lesser production due to manpower shortage and good orders from USA and Japan for plywood, are main reasons of price escalation, including high container freight costs.
As per report, high prices of base plywood have been offering opportunities for Indian Plywood companies to start production of lower thickness plywood ranging from 2.5 mm to 3.5 mm for decorative plywood purposes. Producers say that at this cost, and lesser supply would be difficult for domestic producers to wait with cross fingers. A Plywood Producer says that Indian plywood mills had been producing alternate plywood in 3 mm thickness, which was heavily used for base plywood of making decorative plywood, but slowly industry has shifted to imported, now there is good opportunity for Indian plywood companies to shift Make in India. High Base ply may give space to MDF and some companies are offering MDF based decorative plywood to projects and OEMs.