{"id":87693,"date":"2024-06-06T16:28:33","date_gmt":"2024-06-06T16:28:33","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/current-trends-in-the-indian-timber-and-plywood-market-reduced-supply-and-price-adjustments\/"},"modified":"2025-09-19T09:02:10","modified_gmt":"2025-09-19T09:02:10","slug":"current-trends-in-the-indian-timber-and-plywood-market-reduced-supply-and-price-adjustments","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/current-trends-in-the-indian-timber-and-plywood-market-reduced-supply-and-price-adjustments\/","title":{"rendered":"Current trends in the Indian timber and plywood market: reduced supply and price adjustments"},"content":{"rendered":"

Demand in Gandhidham for green sawn timber is steady with prices remaining at INR 571 and INR 601 per ft3\u00a0from timber from South America and Australian pine logs respectively.<\/span><\/p>\n

The market anticipates three log vessels loaded from New Zealand in June to arrive in July along with two vessels from Australia and two shipments from Uruguay.<\/p>\n

New Zealand log supply is replacing some Uruguayan supply that has reduced due to flooding caused by record rain levels.\u00a0 Uruguay volume has maintained higher sale prices (144 per JASm3\u00a0\u00a0USD for A long) while some New Zealand exporters lost their nerve and discounted price, so the sale price is now in the range 136-140 USD per m3\u00a0for A long. Australian volume is selling in the same range as the New Zealand supply. \u00a0It appears Uruguayan suppliers are rewarded for being consistent suppliers. Also, a part of the Indian market has now adapted and got used to the Uruguayan logs and is competing for a share of the reduced supply.<\/p>\n

In Tuticorin, some containers are arriving from USA, Australia, and New Zealand while South Africa has also resumed supply. The sawn timber price is steady at about 651 INR per ft3.<\/p>\n

India is waiting for the general election result for the lower house of the Parliament on June 4. Once this result is declared more new projects can be implemented, increasing wood demand. Countering this though is the monsoon usually starts in June which may dampen demand until September.<\/p>\n

Election and Seasonal Effects<\/h4>\n

India is awaiting the general election results for the lower house of Parliament on June 4. Once the results are declared, more new projects can be implemented, increasing wood demand. However, the monsoon season, which usually starts in June, may dampen demand until September.<\/p>\n

Rising Domestic Raw Material Costs<\/h4>\n

Yamunanagar, the largest hub for plywood manufacturing, has seen soaring prices of poplar timber in March. The industry reported an all-time high price of INR 1700 per quintal, disrupting the input cost calculations for making plywood. The Yamunanagar plywood industry had hoped for easing timber prices in 2024, but the wait seems longer.<\/p>\n

The Red Sea crisis has led to sudden disruptions in wood pulp imports, hitting the paper industry hard. Consequently, the paper industry is procuring timber locally, driving timber prices to an all-time high. Houthi attacks have forced shipping companies to divert routes, causing longer delays and pulp shortages for the paper industry. Additionally, the wheat harvest season has reduced cutting activities at farms. Industry sources say the unexpected rise in poplar timber prices in March has forced producers to reduce their capacity utilization.<\/p>\n

The North India plywood market has been receiving imported plywood materials from Nepal and Vietnam at very cheap prices, which are below the cost of domestic input prices. The industry feels that the extension of QCO implementation for plywood has hurt the North India-based plywood industry, as it has led to an influx of cheap, low-quality imports. The industry seeks safeguards against these imports to protect domestic production.<\/p>\n

North India-based plywood producers believe that 2024 will be a tough year for the industry. However, they expect a good arrival of poplar timber next year. Reports indicate that the North India plywood industry is currently operating at below 50% capacity, making survival challenging in the present time.<\/p>","protected":false},"excerpt":{"rendered":"

Demand in Gandhidham for green sawn timber is steady with prices remaining at INR 571 and INR 601 per ft3\u00a0from timber from South America and Australian pine logs respectively. 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