Ply Reporter Prediction 2019: Film Faced Plywood Sector Margins to Drop

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Ply Reporter predictions have proved to be on 85% accuracy during last 12 years. Do read Possibilities for 2019... Published on 1st Jan 2019. To know about all the 7 predictions, visit the website regularly or subscribe the magazine.

Issuing new plywood license in Uttar Pradesh will lead to change the face of Film Faced Plywood Industry scenario on 2019. The year is expected to see a bigger production capacity in shuttering plywood segment hence causing tremendous pressure on film face plywood industry margins. Approximately 50 hot presses for film faced plywood manufacturing is expected to be installed in UP alone apart from South India and Eastern region.

There is adequate availability of Eucalyptus timber in the state of Uttar Pradesh, hence UP based plants shall receive abundant good quality raw materials saving freight compared to other places. The fresh competition erupting from new factories and expanding capacities of plywood manufacturers may dent the margins in 2019.

Since manufacturing Film faced plywood is smoother and simple compared to any other panel and offers bigger output with one or two sizes and 3-4 thicknesses hence less clutter and lesser labour requirement attract ply makers. If shuttering plywood demand rise led by budget Housing segment or development in tier 2 and 3 cities then only 2019 could be a year of breather for this segment or 2019 will be a tough year for this product category.

Note: * This Prediction was made on 31st December 2018

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