MDF Prices Further Rise by 7%

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Indian MDF producers have increased the prices again in November month. The reason behind the price rise is said to be the steep jump in timber prices apart from other raw materials. Since MDF plants consume very high quantities of chemicals hence their purchases are in volumes and the cost of purchase are being passed with arrival of raw materials.

As per report, MDF brands such as Action Tesa, Green panel, Century Prowud etc have announced to increase the prices in entire thicknesses up to 7.0 %, which was implemented in November month. Dealers say that the MDF prices have reached an all-time high during the last 3-4 years, and seeing the requirement, we have to accept this, and we pass the same to our customers with immediate effect. Dealers also add that the increased prices are accepted by the market and users both.

As per a Ply Reporter survey, a number of new dealers in different markets have started selling MDF in the last 3-4 years. Report found that during 2013-14, approximately 15% Plywood, Timber, Laminates, Doors selling counters were dealing in MDF, now that ratio has increased up to 40 % in recent times.

The demand and supply equilibrium in MDF and HD+MR category is mismatched because of sudden drop in imports volumes. The sea freight impact is coupled with very high demand of panel products in middle east and Europe hence domestic consumption is presently dependent on domestic production. The Ply Reporter has witnessed a significant change since when HDHMR grade MDF has played its impact in retail markets. It is evident that Dealers also earn genuinely good margin on HD+MR category that is also helping the growth of MDF demand.  Dealers across countryfeel that selling MDF has now become a necessity for Plywood counters now, as missing a single customer in the present time is un affordable for a counter.

Market reports that there is a good demand of MDF in Furniture, Routing, Panelling, Partition, Packaging, Photo framing, Gift pack, Shoes etc, and domestic manufacturing units are running to its 90 percent capacity.

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