Covid 2 has reportedly hit hard the office furniture segment. It has certainly extended the impact on the business of domestic Particle Boards because the producers have been compelled to reduce the prices for securing new orders. As per reports of May-June month sales, the industry sources confirmed that the prices were in downtrend although the timber and chemical prices were in an upward trend in May-June months.
Gujarat based Particle Boards producers say that their raw materials such as timber, formaldehyde prices have increased from the beginning of June month, but the Pre-lam boards prices are going down marginally due to lesser demand from market. As per report, the industry has a huge stock of finished materials because they kept their plant operational during market lockdown period, and they assumed that they would receive good orders once the market opened, but initially it seems a challenge for them, which have been impacting their profit margins of May-June month. Market reports the reduction of prices in Particle Boards although it is not much significant.
Pandemic were said to be a blessing for Indian Particle Boards industry post covid 1, because this sector had registered a good profit margins due to high demands. As per report, during June-July of 2020, the Particle Boards prices went up to 6-7 Rupees per sq.ft and its prices had reached very close to economical grade plywood. Indian Particle Boards manufacturers had reported to earn a good margin in FY 2020-21 despite of Covid challenges but scenario looks turning post covid 2, although a section of industrials and market experts see this as a temporary phenomenon.