Poplar Prices Pain Again, Racing Upward

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Poplar is once again back on rising spree. There was a brief pause in poplar prices due to demand and supply mismatch during mid-November to mid-December but soon it is back to ascending root. Increasing price of Poplar logs is painful for plywood manufacturing units as the prices for finished goods are not increasing. There has been almost a 50 % jump in last one year for poplar where as eucalyptus has noted a marginal rise.

The prices were started escalating from beginning of this year, which has been strengthening almost every month. The prices are reported to be growing in every region be it Yamuna Nagar, Punjab, UP East, UP West, Uttarakhand, Rajasthan or Delhi-NCR region. In December alone, the Poplar logs prices have witnessed a jump of Rs 150 per quintal thus, increasing the core veneer cost by 12 to 15 percent.

Industry says that it has been getting difficult for them to offer Full Poplar Ply in old rates, thus they are compelled to increase prices. Industry sources also confirm that ‘All Poplar Ply’ has acquired significant market share in last 3 years when the prices of Poplar reached to bottom level, hence many dealers want to buy this range but it is tough for companies to supply in old rates.

Although, ‘All Poplar Ply’ prices were up by 15 to 20% in last one year depending on face veneer applied on this. But producers are not much interested to supply this range in coming time because Eucalyptus prices become lesser than Poplar and many producers are converting from ‘Alternate Ply’ to ‘All Poplar Ply’. Manufacturers say that payment and demand both are worrisome at present, hence selling ‘All Poplar Ply’ is comparatively easy. We get advance against these materials as well. As per industry people, ‘All Poplar Ply’ is like a survival pill for many small and unorganized plywood producers of Haryana and Punjab.

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