The wood panel industry is set to witness the peak in timber prices in 2022. The scenario is going to emerge when a manufacturer will evaluate the cost of timber used per square feet with respect to yield and the girth of the log. The timber availability will be highly squeezed and wood-based industries will be forced to purchase logs of poplar and eucalyptus of lower girth on higher rates. The scenario will reflect throughout the country this year irrespective of species.
The poplar prices are expected to cross 1150 mark this year whereas Eucalyptus is expected to hover around Rs 750/tonne levels for high quality timbers. The prices in Kerala for rubber wood are also expected to remain on similar levels. In the East, the timber supply will also tighten because demand for timber is growing with each passing day.
The arrival of new wood-based industries in Punjab, Haryana and expansions happening in Uttar Pradesh and Uttarakhand is certainly pushing towards higher imbalance that will be reflected in 2022 on its peak. The new capacities in MDF and particle board will certainly boost sentiment among plant growers thus sales in timber nurseries will also scale up to new heights in 2022.
But on the whole, the wood panels industries are set to witness the most acute timber shortage in 2022. The Ply Reporter foresees timber crisis hitting plywood industries at the most because the plywood market is not supporting the price increase in plywood category so far.