February month had seen the robust increase in the prices of Melamine. The prices have jumped to approximately double in just two months period. Till writing this report, the melamine prices were touching toward 200 level, which is an all time high. The consumer’s side i.e manufacturing industry is in shock and surprise because they have neither seen nor remotely expected such sharp jump in melamine in so short period of time.
Talking to Ply Reporter Mr. Ashok Saraf from Sunita Commercials Pvt Ltd said, International melamine price has increased by over 100% during the period Aug- Feb because demand for melamine in Europe and China is robust and due to supply chain disruption, increase in sea freight, supply is less than overall demand. He reasons that all raw material prices are increasing world over and industry has to increase end product prices to meet demand so that more supply is possible. Prices during covid-19 lockdown till September was unrealistic as it was below cost of most raw materials. He hopes the prices to stabilize in near future.
It is noted the High-Pressure laminate and wood panel industry consume around 60 to 70 percent of total pie of melamine in India. Because of the key consuming segment, laminate producers are badly affected and more affected because of non-availability of materials as well as unexpected increase in its prices. As per report, Melamine shortage and high price have compelled many laminates producers to shorten their production capacity utilization. The liner laminate units have almost given up hopes of producing quantities with highly volatile market situation on raw material front.
The manufacturing companies are complaining of lack of unity and inability to pass on the prices at this cost to the market. There are hardly a few manufacturers in laminate, plywood and decorative veneers who have been able to pass on the prices with immediate effect. Sighting the scenario at present, the battle of raw material is long and market has to give the needed price increase if it needs un-interrupted supply of finished products.