In a surprising development, there was an immediate shut down of Formaldehyde manufacturing establishments located in Haryana during last week of September month. This has created a chaos like situation among Decorative laminates, Plywood and Panel manufacturing. As per reports, Haryana-Punjab High Court rejected the plea of Formaldehyde manufactures for re-opening the plants, which were shut after the order of Pollution department. The industry sources say that as per order, 10 formaldehyde plants are facing immediate closure of its operation, which had created panic among Northern India manufacturers. The panic has gripped among laminates and plywood producers located in Yamuna Nagar following price increase announcements made by various Formaldehyde manufacturers.
In present market, the Formaldehyde prices are reportedly touching Rs 22 per kg, and it is expect to sustain the increase momentum further. The laminates producers are clearly impacted heavily as this price rise would affect much on the input cost of products. The immediate effect would be visible of liner and door skin laminates because its prices are very much competitive in market. Manufacturers see Rs 15 per sheets rise in input cost of Liner Laminates, which will increase further because the prices will expect to go up.
Plywood producers also contemplating to pass on the price of increased input cost of finished goods by Rs. 1.5 to 2 per sq ft on 18 mm basis due to sudden price rise of raw material. Although industry blames some cartel in such price increase and advised other to not be panic. A section of Laminates and Plywood manufacturers advocate increasing the prices of finished goods to meet this rise in input cost of materials.