High prices of raw materials have affected the prices of decorative laminates in market. As per report, there are approximate jump of 15 percent in prices in different thicknesses of laminates till February month. Decorative laminate market noticed consecutive 2 rises in less than 3 months period although many producers increased a single step rise during January month. Whereas, some producers announced second rise in February taking the entire impact in tune to 12 to 17% varying brand to brand. The sharp increase in raw materials prices is so steep that liner laminate prices have witnessed the sharpest rise of 25% till writing this news.
Melamine, Phenol and Kraft Paper cost shot up sharply in February month that had forced the decorative laminate manufacturers to increase prices again with immediate effect. Till writing the report Prices of Phenol, Melamine and Formaldehyde are touching 120, 200 and 20, which is far higher than average base levels.
More than 20 Gujarat based Laminate companies have announced the increase and more than 40 units have opted to curtail production of 1 shift due to rising input cost induced losses. The estimated price increase being announced is in ranges as 1mm - Rs 65-70, 0.8mm- Rs 45-50 and Liner- Rs 30-35 during Dec to February month.
As per report from different market, the increased prices are accepted because dealers are very much aware about the scenario but it has impacted the demand flow of laminates. Distributors say that they don’t argue with price hike but they are not keeping more stock of materials, they order as per their requirements. They also say that this scenario has impacting their services also because they have been reducing their stocks and many times they are unable to feed some designs to the market. Dealers indicate that this scenario is affecting the demand of laminates in market.