In general the sales were weak during April 2022. The market was hit mainly due to three reasons. First is the race for meeting the target sales during March, and/ or panic buying in anticipation of price-rise. Second reason was lack of work force on sites as well as industries that led to low movement of goods and poor payment rotation. The third key reason was weak sentiments driven by steep jump in steel, cement, gas, fuel prices and this created a mindset of “let’s see, let’s wait” approach.
The hopes are pinned on May 2nd week and beyond when workers will be back and markets are expected to build pace, although stability is expected only by the next month.
Plywood prices in May were steady as timber prices were stable. In laminate segment, prices eased up a bit. Liner prices have seen some easing up in tune to INR 15 to 20 but rest of the thickness categories are on the same levels due to higher cost of paper procurement. The HPL decorative segment is expected to do better during June and July because many of the stalled projects have started to roll. The organized laminate segment is already seeing a pickup in demand.
The MDF and Particle Board sector witnessed some selling pressure as supplies increased. The MDF plants have not increased prices so far despite the rising timber cost. Selling pressure is coming back with the stability in logistics world over. Softening of container prices helped the importers to grow their volumes. Since a year, readymade furniture making sector has grown, thanks to many new entrants. Most of the wood panel industry and trade people are keen to begin furniture production units. What I foresee is, readymade furniture is going to grow, specially the kitchen and wardrobe segment.
Despite of fluctuations and rising raw materials prices, plywood is still the most trusted and widely traded material. Year 2022-24 will be a phase that will see a big bounce in Particle board segment, apart from growth in Prelam MDF. The uses of acrylic laminates are helping the consumption and demand for calibrated plywood but the trade mechanism is still not favorable for calibrated plywood producers. I hope to see a more rational approach in each of the product category where markets need to see price comparison with respect to product quality, product characteristics and warranty on the product. We need to learn and unlearn many things of past after this pandemic phase.
See you at Indiawood, Bangalore! Stay active, stay hopeful!
Happy New Financial Year!
Pragat Dvivedi
Founder Editor Mail to “dpragat@gmail.com”, ( M) 9310612991