India’s High-Pressure Laminates Industry has once again succumbed to raw material uncertainty leading to plants closure for week and few extending to two weeks. The decorative laminate industries have been going through tough phase due to steep surge in prices of raw materials and dollar combined impact. After base paper, phenol along with Methanol and Melamine impacted the manufacturing across the country. The phenol prices soared beyond 30% within a fortnight that forced the factories to stop plants as pre-booked orders of laminates on old selling prices were far lesser than viability range. The supply shortage and prevailing circumstances compelled majority of units to either reduce the production or stop the plant.
On one side phenol scarcity choked the process flow, the other chemical Methanol and Melamine that are vital for HPL manufacturing prices surged by 15 % in the same period. The Ply Reporter correspondent from Gujarat reported that the producer had cut production by 60-70 percent, and most of the units are running one shift in 4 to 5 days in a week. Since the people of Gujarat observe a long holiday spell during Deepawali, hence the production is expected to be very slower till mid of November supported with the hope of easing of phenol prices.
North India based HPL units also reported to have reduced running time by 50 percent in October. The worst hit are plants that have been heavily producing liner grade laminates. According to reports cheap laminates and liner manufacturing is simply not viable hence many companies are reportedly waiting for the acceptance of increased laminate prices and easing of chemicals and other raw materials supplies. According to recent market reports, the liner grade laminates prices have witnessed a rise of Rs 30 per sheet during October last week.