Raw Materials Price Rise, Pushes Ply-Lam Cost Up First Time After Covid

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Phenol prices have been reportedly strengthened after second fortnight of August month. Chemical suppliers say that increasing demand and initiation of provisional anti dumping duty on import from Thailand and USA are the reasons of increasing the prices. During this period, phenol prices have reported to have risen by Rs 12, which is further trending upward. It is anticipated that after reaching to the levels of 62 to 65/- some stability can be seen for some time. On the other side, Formaldehyde prices have also gone up by 20 % during this period.

This sharp jump is being considered very painful especially when market is not that supportive with respect to demand. Industry sources say that this jump is unexpected because methanol prices have not go up in this proportionate. It is noted that Formaldehyde is byproduct of methanol. Formaldehyde suppliers say that the prices have up due to demand-supply gap, because number formaldehyde units in northern India are forced to shut due to Pollution compliances. As per NGT order, many units have shut their production, and there is short supply of formal in market. Melamine prices have also reported up marginally during this period.

The upward trend of chemical prices, have disturbed the input cost of High Pressure Laminates and Plywood. Manufacturers say that the input cost have up due to chemical prices, high labour cost and lesser capacity utilization. Manufacturers murmur that they have to increase the prices in present situation to sustain further; otherwise they would bear heavy losses.

Laminates producers are more affected due to present rise in chemical as well as craft paper prices. The craft papers prices are reported a good jump in last 2 months, although it is expected that coming a new craft paper factory in north India, may help to reduce prices marginally in coming time. Present raw materials price hike will much affect the Liner laminates producers, who are offering very aggressive pricing post Covid era.

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