Melamine and Formaldehyde surprised the wisest ones of wood and décor panel sector due to its volatility and sharp jump in prices. A section of people had started pointing fingers to the cartelization and monopolistic approach of suppliers for this reason. One can’t deny the opportunistic benefits suppliers reap during such times, but the fact is demand-supply scenario. It is fact that the consumption of Melamine and Formaldehyde has increased by 40 % post Covid, which was not being calculated and estimated by suppliers and producers.
In January 2020, it was noted that MDF industry was able to utilize its 65 percent capacity, which has reached to more than 100 percent capacity in January 2021, hence there is consumption growth reported to 35 percent in only MDF sector. Similarly, Particle boards industry was running its 60 percent capacity one year back, which is now running to full capacity. Hence as per Chemical suppliers report, they have been recorded huge jump of almost 40 percent growth in its order from MDF and Particle Boards sector, which they had not estimated one year back.
Chemical importers view that they don’t have such estimate of demand of this sector, and there is shortage of raw materials. They have huge pending orders from industry; hence present scenario has arisen due to demand-supply imbalance.
It is noted that MDF, Particle Boards, High Density Moisture Resistance Boards has been registering good growth in demand since June onwards. As per market report each dealer is interested in keeping High Density Moisture Resistant boards and MDF, because they have started getting query of this material. Growing Readymade furniture demand and reducing import have also been helping these products growth.