MDF demand and supply is easing up with full throttle running of MDF plants. The capacity utilisation in January has reached to optimum level nearing almost 95% of the installed practical capacity. The pressure on MDF dispatches are reportedly easing up with rise in supplies and commencement of new MDF lines
The Southern India is now joining the MDF play with beginning of trial run at Rushil Decor new plant. Besides the big plant by Greenpanel Industries in Andhra Pradesh is reportedly running at full capacity with all might and fulfilling the surged demands. Action Tesa and Century Prowud, too have ramped up all resources and running at full capacity. In south India, the new big capacity plant of Rushil Decor is going to start its production. With start of this new plant, over 2000 cubic meters per day capacity will be in place in South. It is believed that Southern region is a big market for MDF and some part of the regions are led by huge imports. But, with irregularity on arrivals, disturbances on import front, there is a continued lucrative option for domestic manufacturers. Also to have an opportunity to cater the demand in a big way and the manufacturers are not leaving any stone unturned and making great effort to bring maximum plant output.
The dealers based at Bangalore, Hyderabad, Vijayawada, and many cities in Kerala talked to the Ply Reporter and expressed their happiness for this second plant by Rushil Décor in Andhra Pradesh (3rd Plant in the region) because with it the supply of MDF will improve in this area. Rushil Décor dealers are upbeat with this capacity addition because that will facilitate them with better and smooth availability of material and after sales service. Some of the dealers and distributors also believe that the Southern India market of MDF will be flooded of material with over supply to some extent. They believe that it will benefit the industry and trade in 6two ways, one there would be a market expansion and the other the competition may rise.
It is to be noted that with high demand since few months in MDF, , it is to be said that MDF is in comfort zone, but the survey indicates that after January onwards, the actual demand is being seen in the market. It’s forward going and is being observed as testing time for Southern India market for MDF that how it will utilize such a huge capacity expansion. The domestic brands from North India such as Century Prowud, Action TESA, and many more who are having their good presence in South as well, are also having their impact in that market. So, the dealers believe that the market is going to be more competitive that will allow them to control the price escalation also with smooth supply of MDF in the region.