MDF Pressure Eased, Better Capacity Utilization Ahead

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The month of April noted improved lifting of MDF from factories. The MDF manufacturing companies are little relieved thanks to the upward momentum after a long patch of almost 3 quarter that started during last Financial Year. During April and May, the market info coming from stockiest and plants hints at increase in capacity utilization. The capacity uses of MDF lines fell below 30 - 40 % has moved up crossing 55 - 60 % of the installed capacity.

The distributors have also expressed positive outlook as movement has picked up. The breather is being felt after a gap 7 to 8 months which was pretty suffocating due to a sudden bulge in supply after new capacity additions in the country. The three new production lines of Action Tesa in Uttrakhand, Green Panelmax in Andhra Pradesh and Century ply in Punjab added a cumulative total of 2500 cbm that is still a high dose for growing MDF market in India.

The 'attacking posture on price match with imports' taken by Green Panel max MDF has helped the company to improve on its market lifting. The plant of 'Green Panel max MDF, is considered to be quality driven product in south India now and has scored over imported material in last six months. The Century Ply's Hoshiarpur MDF plant has improved its market presence by reaching out to every trusted and potential dealer of Century Ply. Till writing the reports, Century MDF panel continue to improve on market confidence on quality, sustained supply and better pricing.

Action Tesa MDF plant is performing better among all with its strong hold in various product categories and brand image created over the years in particular product segment as a specialist company. Action Tesa plant hold a total capacity of around 1500 cbm in MDF alone that is reported to be utilizing its 80 to 90 percent capacity during April. The increasing prices of plywood has also boosted the prospects for MDF demand specially in lower thicknesses panels.

The reports coming from Rushil Décor VIR MDF from Andhra Pradesh and Pioneer Panels too are better compared to earlier reports. The Ply Reporter sense, that 'from here on, MDF market will see a gradual rise in demand and capacity utilization for next 3 to 4 months till Eucalyptus prices start climbing. Once raw material prices move up, the MDF will again see a price increase that is expected by August - September onwards. Over all, MDF segment has begun to make the positive noise after a long gap of two years thanks to demand and rising prices of cheap plywood.

 

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