Due to the shoring prices of various raw materials such as resins, timber, along with increasing labor cost, Particle Board manufacturers have decided to increase its rate with immediate affect. The information received from the Particle Board industry reveals that the price has been increased up to 10% varies from company to company. Various brands have increased their prices according to their quality and acceptance in the market.
The industry sources say that the prices of formaldehyde have risen sharply and the labor cost has also increased, due to which their resin manufacturing cost has increased significantly. Apart from this, increasing timber price has pushed their production cost up, so they have been forced to increase the prices of particle boards. The industry sources indicate that the increased rates have come into force with immediate effect and the market has also accepted it.
Actually, after opening the lockdown, particle board demand is getting good and the plants are able to use of their optimum production capacity. Nowadays they have lot of orders pending due to which the Particle Board industry did not face any difficulty to get this increased price accepted into the market. Market sources also say that the demand is very good, so the retailers have also passed this increased price to the end users.
On the other hand, international freight rate and container prices are also being reported to have increased, which has affected the imported particle board prices in the country and these products have become expensive due to increased import cost. This situation has also proved to be helpful to the domestic particle board producers to increase their product price. The information received from Morbi, Gandhidham, Ankleshwar, Surat, South and North India, all domestic particle board producers have successfully raised the prices of their products.
Along with wood-based producers, Baggasse Board producers have also raised their product prices. The market sources say that the readymade furniture demand has increased post Covid, due to which there are lots of orders for Particle Board from furniture manufacturers, OEMs and kitchen makers. And with the increased orders, the demand of particle board is considerably good.
Many companies in the market are talking about their capacity expansion witnessing high demand of particle boards. In forth coming years, we may see further expansion in particle board manufacturing capacity. The information received from machine suppliers indicate that new plants queries are coming from Kerala, Gujarat and North India as well, hence the production capacity of particle board may increase in the coming time.
Presently, the increase in particle board prices is helping manufacturers to balance their production costs and margin, and they are very happy with the current market movements and rising demand.