Liner laminates, thin sheets, balancing sheet laminate production is at its lowest point at present in decorative laminate sector. The raw material price hike has impacted the laminate prices so hard that laminate companies have almost reduced their ‘liner grade production’ by 50%. Liner Laminate, being highly price sensitive material and having almost half of the India’s market share, the market is staring at big supply shortage and price volatility.
The thin laminate sheets in laminate market were selling in range of 240 to 265 till last December, is not available even at a price of 350 to 380 till writing this news. The shortage is creating other supply and service issue for laminate whole sellers. On the contrary there is no availability of sheets even on this rates leading to which liner and thin laminate sheets are the burning hot material for India market.
There is no sign of easing up of prices in Kraft Paper, White base, Melamine and Phenol that have been the root cause for the present demand-supply mismatch. The raw material availability and prices are expected to remain in volatile zone till May first week, according to some importers and manufacturers.
According to HPL producers in North India and Gujrat, the liner laminates manufacturing has become unviable on prevailing prices hence many producers have reduced their production of liner by half. The laminate manufacturers are even not supplying liner at any price instead they are producing their regular design range to sustain their brand and folder presence’ suggest reports from trade segment across country. Liner unavailability even on increased prices, leading to a chaos and scarcity in B2B segment, that is also causing business and reputation loss for laminate galleries and laminate traders as per ply Reporter report.
It is noted that Liner grade laminate have been an important driver of HPL manufacturing capacity growth in India. Approximately 50 percent share of the total HPL manufacturing comes from 0.6 to 0.7 mm thickness that is advised to be used in balancing or as a backer (inside of the panels where designer sheet is pasted on the top surface) in India.
In HPL, the Kraft paper and resin play an important role in laminate manufacturing. The recycled Kraft paper prices have gone up by 25 % in March month only that has directly increased the input cost by 20 to 22 rupee per sheet. It is also reported that these paper prices were roaming around 23 during August month, which has reached beyond 40, it means almost 90 percent hike last 6 months that lead to increase the input cost by Rs. 70-80 per sheet.