Wood panel and decorative laminates industry has to bear the cost of high phenol and formaldehyde prices in a month because sources confirm that there is no relief in prices in January as well. The chemical importers indicated the prices of phenol will maintain its same price level of December last month till mid of February 2018. Importers reasoned that the inventory at Indian ports are very low, which is supposed to fill by first week of February then the prices are expected to soften although they anticipate that it will not come down below 90 levels till March.
Chemical importers say that the prices of crude oil, benzene and methanol have been strengthened since November internationally, which has impacted the prices of phenol and formaldehyde. Apart from these, there is huge demand reported in China, Korea and other countries, hence it is demand-supply scenario in international market, which has affected prices to India market. Importers believe that the prices might come down up 10 percent during mid February and March month, seeing the present market situation, import shipments and inventories.
It is noted that the phenol prices were hovering around 70 to 75 levels during Oct-Nov 2017, which had crossed 110 in December. Formaldehyde prices were also strengthened by 10 to 15 percent in last two months. The spiraling prices of chemicals have boosted the input cost of Finished Goods resulting in the jump in prices of plywood and laminates, approx 5 percent to the consumers.