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Contrary to MDF, the Wood based Particle Board industry is expected to be better in 2019 in terms of demand-supply balance and margin scenario. Although there would be not much margin to informal particle board producers due to quality related issue and too much of competition in retail channel led segment but good quality wood Particle Board producers may witness an improvement in their margin due to good demand from office segment.
The quality particle boards producers with 6 feet wise size will gain their market edge, led by less arrival of new plants in wood based particle board segment. In this year of 2019, there is gap in domestic supply of wood particle board because the production volumes at a large Particle Board unit suspended since quite some time.
Since 2018 was not a very smooth year Particle growth manufacturers, India did not witness any mega capacity plant in this segment as happened in MDF. As a result the production capacity remained almost flat giving demand a larger window. Few small size manufacturing plants came in 2018, were unable to utilize their capacity due to raw material issues.
Year 2019 is also ready to witness a better demand for commercial space thus will increase its demand of office furniture, as data from reality related companies predict. The government has challenges to create Jobs in country, hence more business friendly announcement and liquidity availability is expected to help the office furniture segment demand. Volume growth of E-commerce turned furniture brands like Urban Ladder, Pepper fry, Live space and entry of IKEA is also expected to boost the demand for wood based particle board and modular furniture in 2019.
Note: * This Prediction was made on 31st December 2018