Costly Pine Logs Pushes up Board-Doors Prices

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High imported Pine logs prices have been started affecting the cost of Pine Block Boards and Flush Doors in India. The report from Kandla confirms that the Pine logs prices have been increasing since last 2-3 months and it has gone up by 15 %, which is directly impacting the prices of Block Boards and Flush Doors. A board frame supplier from Gandhidham says that the prices of raw boards have been up by 20 % in last two months because he is getting costly pine timber. Gandhidham based Pine Importers said that demand of Pine logs has increased in China that has affected the supplies in India. Apart from this the freight cost has also gone up in last 3 months.

The capital requirement for timber import has also become high post GST because importers have to pay 25 % of capital on port before getting their materials. This increased investment cost is also affected the cost of imported material although it is not a long term investment because they can get input credit in a month period. Pine logs is majorly consumed in construction and packaging sector apart from its significant use in raw material for making of Block board, Flush door and other engineered panels construction in India. The high Pine price has certainly hit the port based Block Board and Door sector, who are struggling because of cheap Poplar prices in Northern India. It is noted that the prices of Poplar timber are touching its bottom that has impacted Pine product demand due to attractive prices.

In India market Pine made Boards and Doors are considered as good quality products because such products are promoted by organized companies in market. Dealers from Delhi, Haryana, Uttar Pradesh, Punjab etc accept that there is a shift of a major sale to Poplar Board from Pine due to competitive /affordable pricing. Boards and Doors producers say that the prices of raw Boards have risen by 20 % during a month besides this frame has attracted 18 % GST where as their finished products are under 28 % GST hence the prices of finished boards and doors may jump by 15 percent with immediate affect.

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