Shuttering Plywood Demand to Remain Flat in 2018

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In 2018, the housing construction activity is expected to remain subdued as builders are under pressure to complete old projects. RERA and GST carry forward impact will show it’s impact on new launches of new projects hence there is expected to be a low demand in Film face shuttering plywood segment. The momentary flash demand could be visible time to time during the year with the announcement of other budget housing projects in 2018.

There are prospects of better demand pick up from infrastructure and Government driven projects apart from low cost housing initiative which will help the demand to gain pick up after May- June 2018. Since there are around 50 new addition of single press manufacturers in film face plywood segment apart from a dozen dedicated plants, the supplies will balance the demand pick up if any.

The film face and Transport sector plywood demand is expected to maintain a 7-8 % growth in aggregate volumes during 2018 suggest our research. The film face plywood prices are expected to witness price increase with rise in Eucalyptus prices in second half of 2018.

The Ply Reporter findings indicate that prices of finished product will rise by 7-10 percent from the present levels but the margins will shrink with involvement of bank exposure and increasing overhead spending in 2018.

 

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