Plywood Demand Remain to Be Sluggish

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The Indian market is still not in full swing according to reports coming in from various regions across the country. The retail counters are admitting of slow movement and lack of new work. The pickup in plywood sales are not visible due to the weak buying sentiments reportedly caused by steep inflation, cost of construction activities and lack of labours. The plywood prices that were announced for the increase have not been implemented by many small producers who feel the sales pressure due to slow movement in markets.

The impact of heat this summer has been very disturbing for workers and factories. The workers who went to their natives during early April are returning but at a slow pace. But the worry is approaching marriage seasons that may lead to more workers going to their states.

The metropolitan cities are witnessing higher retardancy compared to tier 2- 3 cities find Ply Reporter survey. The tier three cities have been most performing for plywood and laminates during the last 2 months shows the dealer’s opinion gathered during ‘Market Sentiment Survey’.

The organised plywood brands are sustaining their sales thanks to various ongoing projects and growing furniture demand in metros. The logistic supply chain and branding exercise is helping the big brands to expand their reach to smaller towns that is the key for addition to their growth. On the contrary Mid-level companies are operating on a regional basis that puts them under pressure due to regional market dynamics issues and demandsupply imbalance.

It is expected that the next two months might be sluggish if marriages and monsoon do not turn in favour of the markets. The Ply Reporter foresees a pickup in sales during June-July with many new sites opening up in every city and town. The resuming ‘work from office’ is certainly going to add better demand for aggressive and active plywood manufacturing companies.

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