MDF Price Rise By 5%, Reason is High Raw Material Cost

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MDF prices have shot up by 5-6 percent varying company to company and product grade. The MDF manufacturing companies were evaluating the price increase announcement since a couple of months following sharp increase in prices of key raw materials such as timber, chemicals and logistics. The price rise observed in Pre-laminated MDF category is actually above 7 to 8 %, led by price increase in printed paper and décor paper segment. The Ply Reporter noted that every MDF brand ‘ActionTESA, Greenpanel, Century Prowud, Pioneer Panel, Crossbond, etc, have announced the increase in prices from first week of January 2021. The acceptance of new prices was immediate because of low supply compared to market demand.

The raw material surge and very high moisture content present in wood with onset of winter season is said to be the key factor in boosting input cost to producers along with high prices of Methanol, Formaldehyde and Melamine. The buyers feel the ‘key factor that has caused the price rise is, ‘demand more than supply, supported by additional rising input cost in MDF manufacturing’

The prices were anyway anticipated to strengthen following ‘anti dumping initiation’ during June-July this year, which helped the Indian manufacturers to allot some capacity uses to thin category. The arrival of far lesser MDF shipments has helped the India based MDF producers because post Covid, tripling container freight has added to net landing MDF cost does not match up the equation.

According to market, MDF producers are taking orders as per new terms and conditions, are considering the rates on day to day basis. Market people say that, it is a new trend being seen in MDF and is like steel or other commodities. Although, Ply Reporter could not verify the claims till writing the news. To offer a new rate depending on the week or days as per day of dispatch because they don’t know the further increase in their input cost because of ups and downs in raw materials prices.

According to the Ply Reporter analysis, MDF demand as well manufacturing capacity uses have reached to its all time high during last 4 months. Allmost all the manufacturing units are utilizing their maximum possible capacity to meet the current demand following which, there has been a huge surge in number of aspirants to put up MDF plant in the country.

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