Domestic Particle Boards and Pre-lam Particle Boards producers are breathing easy due to improved demand from OEMs. A Chennai based Pre-lam board producer said there is sign of recovery in demand after two months of slow down firstly because particle boards production was temporarily lowered in Karnataka and Kerala based manufacturing units. The production in Kerala based units is reported to be disturbing due to scarcity of raw materials affected by rain and flood.
A Bangalore based pre-lam board supplier informed that the demand has recovered mainly at OEMs points, and the payment situation is also improved because they need materials on urgent basis due to tight supply whereas demand at retail segment is stagnant. Seeing the opportunity, the Pre-lam boards producers are looking for price hike, which is pending since a year. A Pre-lam board producer confirmed that due to high dollar prices against rupee, soaring prices of Formalin and Melamine, they have to increase the prices immediately.
On the other side, seeing the good demand in wood based particle boards, some producers located in Gujarat are converting their raw material from Baggasse to Wood. A producer from Ankaleshwar confirms that he is commissioning some new machines so that when he wants he can produce Wood and Baggasse both as per availability of raw materials. It is noted there are a dozen manufacturing units in Gujarat, who are set up for producing Baggasse based particle boards but the irregular supply and stocking burden of Baggasse, are forcing them to keep option open for wood as well. Market sources report that wood based particle boards supply will improve in India by end of this year.