After ruling softer for most part of the year, prices of raw materials used in mattress manufacturing have started moving up much to the concern of the mattress manufacturers who are already severely hit by lockdown and collapse of demand.
Toluene diisocyanate (TDI) and Polyol are the main raw materials used in the manufacturing of foam used in mattresses and the price of both these materials was ruling at Rs 120/kg. a couple of weeks ago. The price of TDI has shot up to Rs 160/Kg and that of Polyol has gone up to Rs 135–140/kg. If the price continues to rule high, the mattress manufacturers may be left with no option but to raise the price of finished products which may further impact the demand.
However, on the positive side, mattress manufacturers see an opportunity, though nothing has been confirmed yet, to export mattresses, foam blocks and mattress covers to the USA and Australia which were earlier importing from China. Further mattress manufacturers also see an opportunity in furniture cushioning and manufacturing as govt. has recognised furniture as a key sector for making India as a manufacturing hub. Currently furniture industry is mostly unorganised with 60% of organised furniture being imported.
Though the situation is improving slowly after a poor first quarter performance in terms of sales, industry experts expect the normalcy to return only in the last quarter of this financial year or the first quarter of next financial year.