Raw materials prices have been a disturbing factor for decorative laminate industry. The input cost of laminate is highly volatile due to unstable prices of Melamine, Phenol, Methanol, Kraft Paper, Base Paper etc throughout the year. In February 2021, Melamine shot up beyond 200 that kept laminate industries trembling. In October 2021, Melamine roared again, and crossed 300 mark resulting many laminates producers stopping manufacturing of economical grade liners.
Melamine back to 150 created further disturbance when viability was beyond calculation and economy. Parallel with that were other raw materials causing worrisome situation. Now, the raw materials prices for laminates are roaring again during last week of January 2022. Melamine touched 175, Phenol 125 plus, Kraft Paper reaching towards 40, Base Paper prices strengthening due to Anti-Dumping Duty on import etc. If you compare with the raw material prices of November-December month, when the laminate makers were forced to reduce laminate prices. Now as predicted by some industry pioneers, there is rise in input cost of laminates and its impact may appear on laminates prices in February and March month.
Laminate producers are again on alert mode, especially for economical grade producers or Liner laminate producers. Since branded laminate producers have reported growth in 3rd quarter compare and have maintained their 1 mm sales despite of weak November month sale. Brands focus on value added products e.g Exterior, Anti Scratch, Matt Finish, Anti Finger, HD Gloss etc have helped their position in high quality Laminates users and OEMs.
Despite of challenges, now big brands are expanding to become stronger in laminates market. In laminate, more capacity addition and new plants in North would create tough time for many laminates producers. A dozen of laminates units may shut operations or go to other hands in 2022. And, this you call the side effect of vulnerable raw materials prices.
This issue has covered the opening of CenturyPly’s Central Distribution System (CDS), which is first and unique model of modern Warehouse Management System in Indian Laminate Industries to serve its customer quick and bring stock visibility across the entire supply chain network. The launching of new products from the house of Greenlam, Stylam, Amulya Mica etc are published. The brief news on Timber Scenario, Face veneers, Particle Boards, Acrylic Laminates, Plywood, ACP and Price Increase of Plywood in different states have also been reported. The highlights of virtual launches, webinars and other happening are interesting read in this issue.
Keep reading, and send your feedback.
Rajiv Parashar
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