Century Plyboards, a leading player in wood panel industry, may soon hike plywood prices to pass on the cost escalation to consumers. However, the quantum of likely hike in prices is not known yet. Recent spurt in resin prices has forced many players in the industry to think on similar lines. Century had recently hiked the MDF prices by around 3% to compensate for the increase in cost of production.
Decision to hike prices also shows that the present demand momentum seen in the wood panel industry is sustainable and 3-4% price hike may not impact the demand in the market. Situation no longer appears to be gloomy for plywood and laminates manufacturers as the normalcy is slowly returning to market in Metro and other major cities. Impressive recovery in secondary real estate market (mainly due to prevailing lower mortgage rates and lower stamp duties announced by some state governments) in the second half also has helped the cause of plywood and laminates sector.
Meanwhile, the company is yet to decide on the location for its proposed new MDF plant. It may be noted that with NGT quashing UP government’s notification permitting new wood based units in the state, CenturyPly is forced to look out for alternative locations for it proposed second MDF unit. The company is reportedly planning to set up new MDF unit in the Southern state. CenturyPly plans to expand its MDF/Particle-board capacity by two times in the near term and by 5 times in the long term.