November has brought some positive hope for the ACP industry because the prices of Aluminium Coils have started dropping. As per report the prices of Aluminium Coils have dropped to upto 15 percent in just 15 days in November. Industry sources say that the softening prices of Coil, would help the industry to maintain its margin in coming months when the materials reach their factory. Industry sources confirm that they were in a non-conform zone in September-October month due to the exponential rise of Coil along with other raw materials and they were unable to pass the entire hike to market, now they take easy breath after the downward trend of Coil, which is major raw materials for this industry
As per The Ply Reporter report in September month, the ACP manufacturing sector was on crossroad due high prices and less supply of Aluminium coils, when industry opined that they where, if it shuts down, there will be losses and if it runs, there will be losses.
It is noted that Aluminum Coil is the main raw materials for making Aluminum Composite Panels that are used in the Façade and signage sector. The Aluminum composite panel manufacturing in India has also grown especially during the last 5 years due to growing demand in various markets. The Aluminum coil, used in top coating is a key material which had witnessed a sharp jump in prices by around 40% in August – September months. With sharp shooting prices, ACP manufacturing companies were badly hit, thus affecting the ACP manufacturing and supplies in markets.
It is noted that with 40 manufacturing establishments, the Indian ACP industry fetches around Rs 2000 crores business annually, which has big growth potential in India if they produce good quality products, and keep an awareness drive for its market growth. Only capacity addition is enough for further growth.