During May 2022, the MDF demand witnessed increased supplies that created an alert mode among manufacturing companies. Supplies have increased but there is not much pick up in demand feel the market’ reflected Ply Reporter findings. Although the supplies from various producers remained at check owing to various compliance factors related to urea and availability of timber, markets did not show any hurry in purchases. On the contrary, the markets witnessed increased discounting by a few manufacturers in the name of ‘volume discounts’. The increased supplies are keeping a check on prices despite the escalating prices of timber reflect the mood during June first week.
The MDF market is visibly slow moving, compared to the same time last year. One of the reasons is said to be the supplies from expanded capacities at Rushil Décor, Green Panel, Action Tesa etc that have added to the push. The new establishments of small plants are also adding the supply and a chatter emerging from imports which is certainly creating a price competency buzz. The Pre-laminated MDF sales are noted to be helping the smaller sized producers as they are offering cheaper pre-laminated boards compared to big players.
MDF is no more just a substrate material, it is now being used in panelling, fitouts and surfacing needs. The material is being used in wider ways now specially after HD+WR arrival. The builders look for cheaper material to finish their wardrobes and kitchen work in metro cities who are now buying more on the basis of economy’ says trade experts in Delhi NCR region. The trend is catching up with pre-laminated boards direct application in cabinetries as well as kitchens which is now being offered in better ways and designs lately.
The Pre-laminated MDF demand, which was hardly 8 to 10% of thick boards shared a few years ago, is now reaching 18-20%. Since the MDF density/board quality has been trustworthy so far, the demands are growing. The smaller brands are catching up the eyes of users in retail markets along with added arrivals from imports. It is being observed that various importers in the south and west have become active and there is an increased arrival from imports to the Indian market. If things go back to the Pre-covid like scenario, MDF segment will be fighting two side battles, one is timber and the other is imports.