Stronger dollar value against rupee has dented the prospects of cheaper imports which has offered relief to domestic MDF companies for now. There were reports of increasing import of MDF from Thailand, Vietnam and Sri Lanka during June and onwards, and it grew significantly with falling sea freight cost. The arrival of imported MDF certainly noted a rise in June, July and August largely in thin boards and green boards.
Though the imports have not been very free flowing as it was before covid phase but some pressure was visibly mounting in markets. But the falling currency against dollar (Rs 80 +) the imports of MDF are suddenly once again getting hit. The importers and consigning agents express a dent in their hopes of re gaining of imported MDF market share in India. Till the value of dollar is so high, MDF supplying origins will not be able to have free run for now. Although tumbling of sea freight is continued which may support the imports once sea freight cost goes down further.
Mr Avtar Singh Bhullar from Century Prowud said to the Ply Reporter, “We are keeping an eye on the increasing import of MDF. Some movement of import is seen from southeast countries, but the high dollar rate& below par properties of MDF means that it doesn't make sense for most consumers to invest in importing this material when they can get the best quality domestic MDF at optimum prices.”
The Ply Reporter Report in July month of the magazine, stated that the market share of imported MDF in the country during the COVID period was almost negligible and has increased by 3 to 4%. For the domestic industry, the price of timber has increased, but there is no rise in the price of MDF due to the arrival of imports and competition posed by them.
The Imported MDF is reported to reach Chennai, Mumbai, Hyderabad, Pune, Ahmedabad market from Sri Lanka, Thailand, and Vietnam. It is also noted that High Density High Moisture Resistance Grade MDF is coming up in high quantities. The competition between imported goods and domestically available materials in the value-added MDF category appears to be rising in some of the markets.
Although the market reports that the price of both the materials in the high density category of MDF is equal for the consumers, in some places, the material is available cheaper with schemes or other sales riders. But it is certain that with the arrival of the material, the penetration of imported goods will increase.