The decorative laminate industry is hit very hard by ongoing raw material crisis. As reported, the laminate manufacturers have been compelled to cut the production by 40 percent during February month. The scenario in March and April too look extremely uncertain, and the production is not expected to come back to normal level. The present situation indicates a prolonged shortage of chemicals, extending to entire March and April as well.
As per report, the situation has arisen due to high prices of Chemicals, Kraft Paper and other raw materials. According to the Ply Reporter communication with suppliers and users of raw materials, there is a huge gap in supply and demand for key raw materials in chemicals segment. As a consequence, the Gujarat based manufacturing units have shut down their one shift of production. The North based producers were evaluating the scenario till writing the news. The laminate manufacturers blame the short supply of Melamine and jacking up prices unnaturally
The chemical prices have reported to disturb the entire ecosystem of laminate manufacturing and trade. As per report, the manufacturers were unable to fix the rate of materials for market because they have received new increased rates of phenol and Melamine every day after mid of February month onward.
Laminate Manufacturers say that they could not quote every day prices of their products but they have been receiving every day increased prices of phenol and melamine, hence it has become very difficult for the industry to run their plant smoothly’. In North India, it is believed that manufacturing units are not able to produce with their entire capacity and have curtailed the production by 25%, because partly they don’t have sufficient stocks of melamine and partly also goes to reduced payments during February.
Industry also indicates that the situation would be prevailing in March and April as well, and they expect the further cut down in production capacity utilization in March month. Industry says that they have been able to buy Phenol and Formaldehyde at increased cost but the Melamine availabilities are very much un-predictable. The overall scenario is becoming scary with shooting up prices of print base till writing the news. A detail report is followed in next edition.