Particle Boards prices in Asian countries have reported to steep hike due to high cost of wood, resin and increasing demand in China. The effect of price hike has been seen in India market also and the prices of Imported Particle Board have gone up by 20%. Particle Board importers confirm that the companies located in Malaysia and Thailand have announced the price increase with immediate affect, which will be higher by 15 to 20 % varying company wise.
Report says that in Asian countries the Wood supply in Malaysia and Thailand remain very critical and prices have increased to historical high level. Glue price continue to up in view of continued increase in Urea and Methanol prices. Mr. Nitin Vaze, MD of Sleek Board said, “The cost increase in the past 3 months have doubled for wood, and more than 30% for glue. The cost increase is significant. Hence, the price increases will be in quite a significant quantum. The shortages in output have a demand supply mismatch in China and Korea and rates have risen in these countries already.
In addition to the raw material, the increasing ocean freights are also begun gallop by double with announcements within April. “In the last few weeks all shipping lines have increased their freight rates dramatically. A big problem is the non-availability of shipping space which is probably also a consequence of the Hanjin bankruptcy. Carriers are repositioning their strategies with survival in top most agenda,” added Mr Vaze. All suppliers are now busy recalculating the new prices in wake of these circumstances of global effect. India imports around 13000 cubic meter particle Boards per month. In year 2015-16, India imported Rs. 236.27 crores worth Particle Boards, mainly from Malaysia and Thailand. This situation may give boost to Domestic Particle Boards producers, and now they have scope to increase the price to improve margins.