The Prices for building materials have soared not only in India but all over the world since a year. On an annual average in 2021, the producer price increase for building materials in Germany e.g timber and steel has been highest even since it is recorded since 1949.
The Prices have soared beyond 60% within a year for solid construction timber, with the average of the previous year according to Germany data. The producer price index in Germany for industrial products was up 10.5% on an annual average in 2021, compared to the previous year. The annual inflation rate in Germany is expected to be 4.9% in January, according to Destatis
In Thailand, particle board export prices have rose above 30.0% during January. The average price of particle board jumped 31.0% to $276.5 per ton. Although the volume declined in January by 29% year on year to 101.6 thousand tonns. Similarly, in MDF, Thailand's export fibreboard price increases 27% in January. Thailand’s exports of fibreboard surged 3.9% year-on-year to 172.9 thousand tons.
Since last two years, majority of South East Asian MDF manufacturers including Vietnam have been focusing on their domestic ready-made furniture demand from OEM segment who is actually serving to exports as demand for wood products across the world is fired up. Also added by boom home renovation demand and surge in real estate.
The global scenario is still not balanced on supply front hence; South East Asian furniture making countries including India will be demanding more of panel products and furniture, for their domestic consumption as well as export needs. The Ply Reporter observes that year 2022 will not see any reduction in wood product prices or demand cycle. The consumption will follow the trend happening in South East Asian countries.