Very steep and uncertain high input cost is putting Indian decorative laminates manufacturing units in tremendous stress. As of now each of the ingredient raw material right from phenol to décor paper to logistic has noted sharp rise forcing producers to ask for another increase. The Laminate industry calculated that there is effect of Rs 65 to 70 on input cost of their 1 mm laminates sheets whereas the realized rates in 1.0 mm has been merely Rs 45 which is not enough. Substantiating their logic, laminate producers have started asking for a second increase in tune to Rs 15 to 30 on varying thickness and range.
The import of raw materials has become costlier due to high freight and dollar prices. Industries from Gujarat are voicing their concern in their associations and regional clusters till writing this news. Instead of waiting for others to join the chorus, few of the laminate producers are also in favour of shutting down the plants to prevent heavy losses. Due to hike in prices of raw material, a large number of laminate producers already increased the prices of all thickness categories from 1 mm to 0.72 mm during November month, but few producers reportedly waited for certain reasons and did not asked for increase.
During the first price hike in November, demand was estimated to be better hence it was accepted and implemented in markets. But again, the continuing increase in raw materials prices is causing desperation among laminate Industries and many of the producers are mulling further increase in prices in different thickness of laminates, expected in January. Although, those who were not able to convince their customer for first increase, are now struggling to consider the second hike.
Market reports suggest that laminate demand noted a marginal dip during December compared to previous 2 months, and supplies of sheets have increased. Hence another round of price increase will become difficult for distributors. On the contrary, a few mid segment brands have started asking for a second price hike seeing the cost sheet impact, find Ply Reporter ground report.
Laminate industry also of view, that raw material suppliers are taking undue advantages of prices and availability which is not justified. A large number of laminate producers are in agreement to suspend their production for a week from 8 to 15th January.