March 2020, India has witnessed all time lowest price offered in the market in Liner laminate category. The entry of new plants in India during 2019 has pushed the volume players to the extent of sacrificing all of their margins just to make an entry and positioning for the new capacities. The prices in liner have seen a further correction by 5% to 6% for few of the volume players who offer payment on instant RTGS basis. Liner laminate is a product, which is very vital for inner covering material for furniture making and is very frequently sold by retail counters in India. The liner laminates are also called as balancing sheets in western markets.
According to market reports, decorative laminate producers are offering compelled to offer the lowest prices of liner laminates in present time because they have challenges to run their plants. If remain idle, these added capacities are going to add negative flow hence selling liners at any price are still a preferred bet for many. Verified market report suggests crazy prices and terms for liner laminates which have never been heard in last 20 years history. The huge supply flow has started to force entire market in that level, 36 which probably will instigate closure of few plants that are weak and so far surviving only on liner production.
Presently a few dozen of producers are running their entire capacity on liner laminates production and they have been attracting many takers. Although Fabic and High gloss liner laminates are taking some share of white, off-white range, and producers get Rs.10 extra per sheets but it is not enough to sustain and growth for a manufacturers in long term.
It is evident that with ongoing price levels, around 30 more plants are exposed to the risk of liner crash and if not taken majors they will also have to include new partners or close plant. The Indian laminate market consumes around 120 million liner sheets every year, where many plant survive on a certain margin level. With present push, laminate sector is staring at a tipping point where many will feel pressure and few may stumble on a price war path. According to the Ply Reporter, in 2018 and 2019 there have been around 20 factories closure or plant sold to new players and the year 2020 will also be no exception.
Lower priced and inferior quality products will always damage the growth of entire HPL sector hence dealers and retailers must play important role in promoting and selling genuine quality liner laminates. Producers of any material must be paid their genuine margin to keep them afloat else, users and customers may shift towards readymade furniture in future with deteriorating quality of materials sold on retail counters.