After robust demand till November, Decorative laminates sector has began facing challenging times because of disturbance in different raw materials supplies to Industry. Post Deewali, the fluctuation in raw material prices has once again forced producers to re calculate, re-evaluate and assess the supply scene. There has been price rise noted increase in each raw material during last one month that has led the manufacturing clusters to meet again to consider the price rise possibilities to make the plants survive. The Covid 19 induced lockdown had already damaged the profitability for financial year 20-21, but continuing on same prices with current raw material status is suicidal’ said manufacturers from organized segment. Till writing the news Melamine has noted 100 % price jump followed by Phenol by 20%, base paper by 6 to 7% and recycled craft by 35%.
The mid segment laminate producers are heavily under pressure due to craft and melamine price jump which is compelling them to announce another rise of Rs 30 per sheet in days to come. Since organized brands uses A grade or Virgin craft paper, they are considering the price rise announcements any time soon. The Ply reporter market report finds, a number of decorative laminates producers have slowed their manufacturing shifts because of payments and raw material supply issues with respect to price and payments. According to reports few companies are advocating for two week shut down for laminate plants.
Raw materials suppliers currently prefer to supply to producers, whose credit period is short and as per terms. Since there are constraint of supply due to freight and containers, their stand of good paymasters first is hitting the weak players hard as they are forced to produce bellow 0.7 mm sheets. Laminate producers in Gujarat and North India admit to being unable to produce in full capacity because of scarcity of raw materials leading to 30 % lesser utilization post Diwali. Scenario strongly indicates to a second announcement of price rise by Rs 20 to 35 per sheets for varying thickness. It is noted that there was a first price rise in tune to Rs 20 to Rs 40 on varying thickness last month.