Covid 19 did create a demand supply mismatch, but now world economy is going through huge demand of every material but with extreme supply constraint. World over, wood veneer demands have gone up, thanks to too much money available in countries thus taking housing market to the boom. The demand in US, Europe and Middle East is so high that raw materials are not easily available. Veneer Suppliers in Europe explain that ‘high demand of Decorative Veneers, Lumbers and Logs in Europe and USA, is not allowing them to look at cheaper markets. Veneer flitch supplying companies say that they are fully occupied with orders; hence they are unable to feed India market requirements because they ask very economical grade materials.
The Indian Decorative Veneer industry is currently facing a shortage of decorative veneer flitches from European and American region. As per report, European and American Companies have a huge order of premium grade Veneers and Lumbers. There is high demand for Walnut, Oak, Ash and Tulip wood in the international market.
Mr. Bharat Seth, a Veneer and Lumber supplier, said to The Ply Reporter that ‘it is a seller's market in the present situation and due to less availability, the prices of Walnut Oak is certainly up beyond 20 %. There is scarcity of Tulip wood too, which is in high demand in India, hence, we have to accept the situation and we have to face the challenge of high cost of raw material. ‘The present short supply situation will remain for a long time, hence domestic industry may focus on Dyed and a special kind of Recon Veneers in present time’ says Mr Seth.
In India, the domestic veneer industry is doing their best to procure veneers and lumber at any cost and the prices of finished products will go up in the coming time. Mr Suresh Shah, Director, Timex Veneer says that there is shortage of lumber and veneers and arrival of shipment has been delayed but he is ready to serve their customers' requirements and do his best to procure materials from Europe and USA.