The price fluctuation in every product category is an accepted reality in India. Every wood panel product including decorative surfaces have noted an increase in tune to 15 to 40% price jump in last one year. But teak ply prices are still available on prices that are hard to calculate if quality is right. During a survey on veneer sector conducted recently, the evident facts noted was hardly 3 to 5 % price increase in teak sector. Digging deeper the analysis found of reducing grades and thickness in decorative veneer and plywood segment.
The imported teak ply from China is no more available on the same price and quantity any more but the domestic producers have increased their plywood production to fulfil the demand. The teak prices including some mass consumption species have not seen much of the price increase despite the sharp rise in base plywood price. The compensation is coming from the top layer grading deterioration i.e compromising on thickness, color, grade and overall quality’ feels the veneer retail experts. The quality and grade is coming down because majority of producers are trying to sell volumes thus there is a pressure on prices, commented a Surat based retailer.
The veneer market survey reflects, that teak veneer is still holding the dominating share and the cheapest in veneer category. According to price check analysis, teak veneer prices are hardly 4 to 6 % up where as all other species have noted an increase in tune to 12 to 20 %. The rational behind teak prices was that it is coming from neighbouring countries so sea freight impact has not been much, but cross checking these facts with producers reflected increased pressure due to competition and payment pressure.
If one is comparing good quality, high grade product with 0.3 mm plus faced teak, the teak ply prices are no where near to less than 50. Yet there are products selling in range 20 – 25% cheaper. Amidst all the uncertainty in veneer category, what has become a caution is buy teak according to grades.