The ‘All Poplar Ply’ prices have jumped over 15 % in last one month due to rising poplar log prices in North India. There is tremendous tightness in availability of Poplar logs in North due to limited availability and higher industrial demand. The impact is clearly seen on finished product where plywood prices have moved upward by Rs 3.50 and above per square feet. Market report confirms that if dealer wishes to get all poplar plywood range, he has to pay around 20 % higher price compared to prices 2 months before. It is reported that prices of Poplar logs are hovering above a difference of INR 200 plus per quintal. The estimates reveal that log prices have shot up by 40 % during last 50 days and it tends to increase further because of demand-supply scenario.
The plywood production capacity in North India has almost doubled during last 2 years due to expansion in existing plants, modernization, machineries and commencement of new manufacturing establishments, which has led to increase the consumption of timber. On the contrary, the planters are not taking interest in plantation of Poplar timber because they are not getting expect prices of their logs and gradually the plantation area have been reduced since last 3 to 4 years. With rising cost, plywood Industry is switching to alternate plywood manufacturing instead of all poplar as cost of Poplar Core Veneer and Eucalyptus have been leveled. With almost higher poplar cost, relevance of all poplar has come to an end hence giving a way to era of alternate ply demand in 2018-19 onwards.
The Ply Reporter analyzed and found that ‘offering fullpoplar plywood at present pricing, is a net loss-making affair for producers, hence different state associations have begun demanding price increase announcements on local levels. There are people who are still willing to buy all poplar ply at increased prices hence a small segment of market will continue to purchase and sell ‘All Poplar Ply’ at higher prices and various small plywood producers would still produce these segment range to retain their market. With extended spell of rainy season, the prices are not coming down any time soon predict market experts from timber segment.