Compared to the first covid wave, the second wave has reported to have less impact on demand of the first quarter for the wood and decorative Panel sector. The first quarter of FY 2020- 21 from April to June 2020 was badly affected due to complete lockdown, and it was marginal revenue reported in that quarter, but the second wave, which reported during almost similar period of First Quarter of FY 2021-22 from April to June 2021, has not much affected the revenue against previous year same period.
As per a report from Industry sources, it is estimated that the revenue is expected to reach 50 to 60 % in the First Quarter of the current Financial Year. It is noted that April month sell revenue was noted approximately 85 % because most of the market was open expect few, whereas May demand was reported to impact much on Plywood and Laminates demand, and hardly they reached to 30 % of its domestic market but from the beginning of June month, the market has started open with unlock process due to decreasing trend of Covid cases, the market recovery of wood panel demand has been noted in June month, although the southern India market was under the lockdown shadow in June as well. It is expected that June demand would reach 60 % as per industry sources.
Wood Panel Industry experts expect the better recovery in market demand from July onward month, once the labour and payment scenario have improved to pre-covid 2 level. The increasing prices of different raw materials such as timber, chemicals etc, the prices of wood and decorative panel products would increase for sure but a chunk of industry people are worried due to increasing prices of raw materials vis a vis less demand of finished products. Although the increasing price trend of other building materials products such as steel, paints, etc are supporting them to ask for increased prices. Industry feels that once the demand improves in July, their prices will easily be accepted.