Increasing raw materials prices are compelling, unorganized and smaller decorative Laminate producers to compromise on thicknesses in laminates category. A similar trend was seen in plywood, MDF, particle board in last decade in India. The laminate category is now being treated in similar cost saving tricks to match the market price due to rising supply and competition, shows the report prepared by The Ply Reporter.
The popular thickness of liner laminates are said to be 0.72mm, has reached to levels in range of .62 to .65 for various brands but mentions a higher thickness. The Ply reporter tested a few samples drawn from market and found a stark contrast to what are claimed by manufacturers during January 2021 on thickness front. The major flaw is reported in liner category where actual thicknesses are 10% lower than mentioned or promised. The liner or balancing grade laminates contribute toapproximately 50 percent market share. The falling thicknesses in this segment is largely attributed from rising raw material prices of Kraft Paper, Base Paper and Resin but not able to fetch selling prices in accordance to RM cost.
prices in accordance to RM cost. With increasing input cost, the liner grade laminate manufacturers were at back foot. Many of them had curtailed their production few months before. They also increased the price of liner grade laminate where, the first price rise was accepted easily, but the second price rise could not be achieved. The pressure of increasing raw material cost is somehow now reflecting on compromised thicknesses, reveal latest survey. The compromise with the thicknesses in liner grade is the side effect of increasing input cost, as the volume trade players are not finding it sustainable to feed the manufactures with increased price further. Resulting to that many manufactures are reducing the thickness to meet their requirements and sustain in the market.
The report indicates that 0.65mm liner laminate supply has increased in large volume; still there is no complaint from the users. It is also believed that there is no standard for thickness in Liner laminates and as the material comes the supply go in the same way. The payment cycle is also not so bigger in this category like others. The current market trend will give a shortterm relief but it will affect the laminate industry in long term. It can pose a question mark for ongoing expansion in liner grade. The technical people say that liner grade laminate is a balancing product, so, if it is used in front and back of the panel in same thickness then only the panel will be balanced. But, with lack of knowledge and oversupply, the scenario is changing very fast.