As predicted by Ply Reporter’s the Poplar Timber prices have been rising with spiral effect every day in north India, which has created an extra burden of plywood factories because their production cost has changed in last few weeks. Market reports that the Poplar timber prices have been climbing up since last 3 months on each day basis, and is reported to have touched near double mark in last 3 months. Producers from Yamunanagar say to the Ply Reporter’s team that there are new rates being quoted that are higher than the earlier each day in Mandi.
Manufacturers also equally getting disturbed with reducing girth size and under quality timber which indirectly adding to cost of manufacturing plywood, doors and block boards. Even the timber merchants are reportedly not happy and satisfied with the timber quality in comparison to prices at present. They get mix kind of logs diameter ranging from 15 to 24 inches where as they are forced to pay the high cost of lower girth timber.
Market reports that the Poplar logs prices reached to 900 per quintal during last week of February. Once there will be some opening up the prices may become stable but sooner it is expected to further strengthen up to 1000 mark. The Plywood Industries are expressing extreme inability to bear with this high cost burden of raw materials and are making efforts to increase the prices of finished goods.
As per market report the prices have been announced to increase in phases and presently are effectively increased by 10 % on All Poplar Plywood and Block Boards. The prices of alternate plywood too are dearer by 5 to 6 % as reported in different markets. Manufacturers confirmed the acceptance of increased Poplar Ply and Block Boards prices rate in market but there is cut throat competition in Alternate Plywood segment because of high supply and weak payment collection. Industry blames the high capacity addition with number of new units for this situation.