The demand for MDF and HDF is expanding rapidly. The Ply Reporter prediction analogy foresee the year 2023 to witness the market of medium density fiber boards and its related value-added ranges will grow further with frequent application in interior infrastructure needs. The extensive capacity addition by existing players and some new players adding up to more capacities will create a push and subsequently a bigger market for MDF products and related value-added range.
The Ply Reporter estimates that current annual market size of MDF is around 7200 crore which is estimated to reach to Rs 8500 crore in 2023. It believes that margin in MDF will squeezed with more product push, material availability and rise in timber cost. The upcoming capacities which are being added, are comparatively large, and most of them are starting in 2023 April onwards. The supply rush will create a pressure on selling prices of MDF and related products. Since the supply of MDF and other value-added products in this category to increase sharply the market of these products will start reaching to tier 3, tier4 and even tier 5 cities.
Year 2023 is visibly appearing to be dull for the export, whereas imports of MDF are set to grow rapidly due to the falling sea freight rate now. The imports are going to be stronger in 2023 than before, therefore the supplies are going to increase from both sides, domestic as well as from imports.
MDF prices will remain stable till May 2023 but later it looks to taper down. Although there will be unparalleled dominance of domestic manufacturers despite imports will continue to come.
In 2023, with increased capacity and imports, brands will focus on developing new applications and raise awareness among contractors, carpenters, OEMs, and ready-made furniture manufacturers. The segment will also find its various uses in growing applications like louvers, prefinish panels, base-ply decorative veneers, etc.