Century Ply may hike the price of its particle board products during the quarter. However, quantum of hike planned is not yet known. Price hike has become necessary due to inflationary pressure and also with the rupee depreciating considerably during last few months there is lesser threat of imported particle boards.
Currently, the company is running its particle board segment at 100% capacity utilisation. Till now the company was focusing on market share and as a result had decided to postpone price hike in the first half of current year.
Recently the company effected price hike for its laminates products to accommodate increased cost of raw materials. The company effected a price hike of 3.5% in November first week to account for increased cost of phenol.
On the other hand, Century Ply effected a price cut of 4.5% for its MDF products in the second quarter of the current financial year. MDF division is seeing intense competition due to sharp increase in the capacity additions in recent months. However, company management and industry sources indicate that MDF prices are on the verge of bottoming out and don’t expect further price corrections. Company’s MDF division currently runs at less than 60% of the capacity utilisation. However, situation has improved considerably since October and it is hoped that the situation will continue to improve in the coming months.