The particle board market is now a said to be smooth with the return of demand for prelaminated boards during August last week. The first week of September was also reportedly performing better in Southern and Eastern regions of the country compared to July. The price increase announcements made by particle board producers is under implementation and this has also helped the sector in material pick up’ said manufacturers from Gujarat.
There is a sudden surge in material demand from office furniture makers, who are seeing a jump in order book. The companies from edge band segment to are confirming about very good demand for edge bands with rise in demands from bigger OEMs doing office spaces. Bangalore based particle board suppliers too have expressed relief they are seeing increasing materials orders from OEM category.
With raw material scarcity and lower production, present markets are stable on demand. However, pressure on margins is being talked about among particle board manufacturers due to steep paper and Melamine cost apart from rising wood and bagasse input cost.
The Indian particle board market has been growing at 16% YOY with arrival of 6 to 7 new plants being added in the country every year. In Gujrat alone there are 5 to 6 new lines under additions. The leading manufacturing units such as Century Ply, Treelogy, G-Mica, Crossbond, Trenox etc, are still bullish on this product category and the growing demand as domestic production is fast replacing imported particle boards.