Shuttering Plywood demand is reported to drop approx 40 % in September-October month due to poor lifting of materials from the real estate and retail sector. Reports from Plywood manufacturing units located in Yamunanagar, Punjab, UP indicate that manufacturing units are forced to reduce production in both consecutive months due to poor demand, and most of the units are running only in day shift time.
Manufacturers say that they had performed well in April to August month, and even in Covid lockdown period they had received good demand but the sudden drop in demand in September and October had surprised them. Producers view that they have reduced their capacity utilisation because the high prices of different raw materials are another burden and which has been affecting their profit margin and realisation. Shuttering Plywood producers collectively increased the prices of finished goods but the lower demand had discouraged them, says a producer from Yamunanagar.
Experts say that due to high prices of Iron, Cement, Sand etc, many construction projects, new launches, individual homes etc have been halted temporarily and they are waiting for softening prices of Iron, which has jumped up unexpectedly high. Builders and Contractors say that due to high prices of building material products, their construction costs have gone high by 25%, which is very difficult to observe in the present time. Many builders, real estate firms are in the process of negotiating with clients, government, and home owners etc to increase the budget and bid, so that they can pass this high cost to actual users. Builders say that they are in a catch 22 situation, thus they have halted their work temporarily, which they expect to restart post Deepawali.