The decorative laminate industry is currently stuck in the confusion of steep cost and weak lifting. As reported, the laminate manufacturers are running slow and expected to be compelled due to uncertainty in prices. The reports appearing from semi organised and emerging laminate segment, there is a pressure on prices as well as sales and somehow the low demand is keeping the price rise under check. To manage the scenario, laminate producers have slowed down the production by 30 percent during February-March month. The scenario in April too looks extremely uncertain, and the production is not expected to scale any time soon.
The present situation indicates an upward momentum build up in Kraft Paper apart from high prices of other raw materials. As per report, the scenario is facing pressure from high prices of Chemicals, Kraft Paper and other raw materials. According to the Ply Reporter communication with suppliers and users of raw materials, there is a huge gap in supply and demand for key raw materials such as Kraft Paper. As a consequence, the Gujarat based manufacturing units have stopped their one shift of production. The North based producers are also following the same and they are waiting for further price rise in 0.8 mm and 1 mm laminates.
The high prices of Kraft Paper are reportedly disturbing the entire ecosystem of laminate manufacturing and trade. As per report, the manufacturers were unable to fix the rate of materials for the market because they have received new increased rates every day after mid of February month onward.Laminate Manufacturers say that they could not quote every day prices of their products but they have been receiving increased prices of their raw materials every day, hence it has become very difficult for the industry to run their plant smoothly’.
In North India, it is believed that manufacturing units are not able to produce with their entire capacity and have curtailed the production by 40%. Industry also indicates that the situation would be prevailing in April as well, and they expect the further cut down in production capacity utilization in April month if there is no price increase further. The overall scenario is becoming scary with shooting up prices of different raw materials with lesser demand till writing the news.