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Turning Points of 2019 - MDF Plants Slogged, Yet to Back on Track

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India’s MDF manufacturing capacity has been more than doubled in 2019 with the commissioning of new plants in the South as well as North. The first two months of 2019 seemed tough for domestic MDF producers but March and April led to the better lifting of MDF panels from the factories and stockiest warehouses. The MDF manufacturing companies felt relieved because they witnessed this upward momentum after almost 8-9 months. The distributors also expressed a positive outlook as movement picked up. The breather was felt after a gap of 3 quarters by companies too. The MDF market was under clouds of weak demand flow and oversupply after new capacity addition in MDF plants. There has been sudden supply jump coming from three new production lines of Action Tesa, Green Panelmax and Century MDF.

During April 2019, reports coming from these plants indicated an increase in capacity utilization crossing 40 to 45 %. The ‘attacking posture on price match with imports’ taken by domestic producers helped the company to improve on its capacity utilization and better lifting. The Century Ply MDF plant improved its position by reaching out to every trusted and potential dealer of Century Ply. Century MDF panel gained the confidence of dealers on the quality front along with the brand image, on the other side, the ‘Green Panel max MDF, an established product based on quality parameters, gained from strategic price and supply comfort for the south belt. Till making this report MDF capacity utilisation was estimated to be touching 55% in India.

The widely present Action Tesa MDF, too noticed an upward curve in demand, thanks to rising prices in the cheap plywood segment. Action Tesa MDF plant Shirdi Industries, Crossbond MDF, Pioneer Panel also received better capacity utilization throughout the year. Import of MDF has also been going down from Sept to November month last year and has been reported to drop by 50%. The Ply Reporter senses, ‘from here on, MDF market will see a gradual rise in demand & capacity utilization and overall, MDF segment has begun to make positive mark after a long gap of two years, thanks to demand.’

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