Timber prices have reported to reach all time high in September month, which has created a ruckus in Plywood and other Panel products manufacturing. The high cost of timber has directly impacted the input cost of finished products, which prices have been strengthening every day. As per report from Yamunanagar, the rates of Poplar wood, which is used to manufacture all types of plywood and board, have witnessed an increase of 25 per cent due to its short supply. The rates of oversize poplar wood were Rs 800 per quintal in February 2020, but the rates have now reached beyond Rs 1,000 per quintal.
Similarly the Eucalyptus timber prices have also noted a high jump from Rs.450 per quintal to Rs. 800 per quintal during the last 6 months. It is noted that the timber contributes a major share of Plywood Products manufacturing, thus the producers are forced to increase the prices of finished products. Timber suppliers say that the prices would not come down in near future because of limited supply. As per report from Yamunanagar, Punjab, Uttarpradesh and other north India markets, the industry has compelled to increase the prices of finished products which has been affecting lifting of materials. Industry sources also revealed that the capacity utilization has dropped drastically because less demand and many small units are forced to stop production.
As per report, Industry Associations belonging to Punjab, Haryana, Uttar Pradesh, Delhi-NCR etc have announced price hike in Sept month from 6 to 7 % in different product categories.