Disruptions in global logistics triggered raw material price hike
The ongoing tensions between US-Israel and Iran have taken its toll on the global raw material supply chains, consequently the price of imported raw materials and chemicals used in the manufacturing of MDF, Laminate, PB and Plywood are likely to witness inflation.
As per global reports, the melamine price is reported to have notched up by 10-15%, whereas formaldehyde prices are also up by approx. 10%. Besides that, the prices of other products such as imported core & face Veneers are also seeing high volatility, and are likely to surge amidst current conflict.
Impact on the price of technical grade Urea has also been reported owing to its dependency on the import, the surge in the price of tech grade Urea & other chemicals will eventually increase the overall resin manufacturing cost which may be reflected in higher input cost of plywood, MDF, PB, Laminate and other panel products.
The global upheaval of supply chains is mainly caused by the acute shortage of containers even in the Indian Ocean; hence many shipping companies are also facing higher container freight charges, many containers are reported to have been blank sailing and some carriers are compelled to change their traditional sea route-Strait of Hormuz, a vital transit gateway to India.
If the current war situation persists, industry may face grave shortage of raw material in future, however at present both manufacturers and traders of plywood, MDF, PB, Laminate and other panel products are in wait and watch while closely monitoring the situation.