The Iran-US conflict has compelled Indian wood panel producers to reorganise their production and sales targets as costs rise. In a rapidly evolving and complex situation with no endgame in sight oil prices have shot above US$110 per barrel following the choking at Strait of Hormuz. India\u2019s methanol supply is among the hardest-hit chemicals followed by PVC resin, Acrylic monomer and imported urea.<\/p>\n
India imports about 1.3 million tonnes of methanol annually of which around 40% comes from the Arabian Gulf, Iran itself is one of the world\u2019s largest producers and exporters of methanol and supply through the Strait of Hormuz accounts for 30% of global methanol trade.<\/p>\n
The conflict has disrupted shipping routes, creating significant uncertainty in Methanol and Urea supply, which is a critical source for wood panel decorative and related polymer sheet industries in India. So far the cost of producing almost every wood panel product and decorative interior and exterior product has increased. The rise in the production cost of plywood is estimated to be 4-6%. Production costs for MDF and particleboard have also risen around 5%.<\/p>\n
Against the backdrop of developments in West Asia the Federation of Indian Plywood and Panel Industry, South Indian Plywood Manufacturers Association, North Malabar Plywood & Doors Manufacturers Association have written to Ministry of Commerce and Industry and Department for Promotion of Industry and Internal Trade (DPIIT) requesting a reduction in the basic Customs duty (BCD) on key chemical imports such as Technical-grade urea, Phenol, Melamine, Methanol used in Resin manufacturing for plywood, MDF, particle board, laminates and other panel products.<\/p>\n
Various plywood and timber associations across India have issued a flurry of price advisories in the wake of ongoing tensions between US-Israel and Iran. It is inevitable that manufacturers will be compelled to increase panel prices.<\/p>\n
The Kandla Timber Association (KTA) has advised plywood and veneer industries to implement price adjustments and readjust their commercial decision taking into account current market conditions and the impact on raw material prices.<\/p>\n
According to the KTA, in view of the current ongoing geopolitical situation in the Middle East, the overall cost structure has increased by roughly 8-10% due to significant uncertainty in the global supply chains and freight movement and raw material supply stability.<\/p>\n
The Haryana Plywood Manufacturers\u2019 Association (HPMA) has issued a trade advisory to all members in response to the volatility in raw material import prices amidst conflicting situations in the Middle East.<\/p>\n
The HPMA has said the plywood industry is presently facing a significant increase in the cost of major raw materials including Phenol, Formaldehyde, Urea, Melamine, Face Veneer and Core Veneer. The ongoing conflict situation in West Asia has also disrupted global supply chains leading to volatility and irregular availability of several key inputs. In the face of such developments the manufacturing cost of plywood products has increased by around 6 %.<\/p>\n
The Punjab Plywood Manufacturers Association (PPMA) also suggested a price increment of 5% on the plywood citing increased raw material cost. The Association noted that, due to the steep increase in prices of various inputs like timber, Formaldehyde and phenol plywood mills are running at a loss and the viability of factories has come under pressure.<\/p>\n
The Wood Based Industries Association of Uttar Pradesh has declared an increase in the price of all wood panel products of 6% with immediate effect due to the sharp rise in prices for raw material. The Association also cautioned all the members to revise their prices accordingly to save the wood panel industry from further damage.<\/p>\n
The Rajasthan Plywood Manufacturers Association decided to increase prices of Board and Flush Door by Rs.24 per square foot. Whereas a 5% price increase in the prices of plywood has been implemented in view of the sudden increase in the prices of chemicals (Formaldehyde, Phenol, Melamine), Face Veneer, Pine Raw Board and Pine timber due to international circumstances.<\/p>\n
The Particleboard Manufacturers Association of Kerala (PBMAK) has decided to implement a price revision for particleboard in order to sustain production quality and ensure uninterrupted supply to the market. The PBMAK noted that manufacturers have been facing continuous cost increases due to global supply chain disruptions and rising input costs. Despite sustained efforts by manufacturers to absorb these increases, the situation has now reached a point where a price revision has become unavoidable.<\/p>\n
The Gujarat Particle Board Association has suggested at least a 15% hike on existing product prices due to the shortage of raw materials and the continuous increase in production costs mainly caused by the rise in prices of resin, wood and paper raw materials.<\/p>\n
The All India Decorative Veneer Manufacturers Association issued an advisory on the ongoing challenges arising from global market changes, the weakening rupee and rising operational and overhead costs. Based on their estimate a 12% increase should be implemented immediately.<\/p>\n
The Indian Laminate Manufacturers Association has issued an advisory because the price of several raw material used in laminate manufacturing has been significantly increased. The prices for different varieties of laminates will be increased in the range of INR35 to 70 per sheet.<\/p>\n
The All India Edge band Manufacturers Association also issued an advisory on price increases due to ongoing Middle East conflict which has resulted in a shortage of raw materials used in manufacturing of edge bands. In the current scenario, members are advised to increase the prices of edge bands by a minimum 15%.<\/p>","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":98465,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204],"tags":[],"class_list":["post-98464","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news"],"acf":[],"yoast_head":"\n