Oversupply has forced balancing mica or liner laminates producers to reduce prices by 5 to 7 % per sheets. The hike in laminate prices were called by many producers two months ago due to various material price rise led by Phenol. The prices of liner laminates have reduced also due to start of 3 new decorative laminates manufacturing plants in northern India , because half a dozen of new laminates manufacturing establishments have started its commercial production in last 3 months, which are producing liner grade laminates to start initially but rates have succumbed.
Experts say that market has flooded supply of liner grade laminates in last 3 months due start of new manufacturing lines, besides there is pressure in demand of 1 mm and 0.8 mm laminates because of slower payments collection. A producer says that at present time, liner laminates is like bread and butter for us because at least we get payment immediately after selling this. The payment collection has become the biggest worry for the producers and they are forced to sell those materials which can help them to retain their payment flow intact.
The softening prices of phenol and formalin along with stronger rupee against dollar have provided cushion for them to reduce the price of liner grade laminates. Because liner mica has become a commodity, of which prices are directly related with up and downs of raw materials, one can not hold for too long until he operates with brand and design supremacy. Industry says that the softening prices of liner grade laminates have created confusion in market because dealers are expecting price reduction in range as well.
At present there is no drop in prices of full thickness 0.8 mm and standard thickness of 1.0 mm category. After the laminate prices were increased in October 2018, many producers are hear to be compelled to halt or reduce the production during December but on the contrary but it came of its old level after one month period.