HomeNewsThere seems to be no end for MDF makers’ woes

There seems to be no end for MDF makers’ woes

When domestic MDF market was crawling back to normalcy, the industry is now facing a new threat of dumping from foreign manufacturers. There is sudden spurt in the imported MDF which has impacted domestic manufacturers’ realisation in Southern markets. According to some leading MDF manufacturers, global MDF prices have declined recently as a result of which imports have increased bringing down the MDF prices in the local market.  This has also widened the MDF price gap in the Northern and Southern market. While MDF prices in North are currently at Rs 20,000 per CBM landed prices in South are at Rs 14,000-15,000 per CBM.

Since MDF is a bulky product whose long distance transportation makes logistics cost too prohibitive, at the current level it may not impact MDF prices in the Northern market. However, further fall in the Southern market may have its impact on prices in the North too.

With the falling price of MDF, plywood manufacturers too are worried as the sustained fall in the price in recent times had its impact on the demand of certain categories of plywood. This is so because the consumers preference started shifting towards MDF due to its price competitiveness. MDF is selling at Rs 30-32 for 19-mm while cheaper plywood, which it is replacing, is selling at Rs 40-42 for 19-mm. Further fall in the price of MDF, especially in Southern market, will make it even more attractive vis-à-vis  low end plywood thus eating into their market share.

Until 2010 India had only 200 cubic meter/day MDF manufacturing capacity. However, between 2010 & 2013, a fresh capacity of 1200 cubic meter/day was added. Presently, industry’s capacity is estimated at 13.5 lakh cubic meter while another 2.5 lakh cubic meter is imported annually. Rushil Décor is setting up a plant with a capacity of 1.8 lakh cubic meters in Andhra Pradesh. CenturyPly too has decided to increase its capacity from 600 CBM/day to 1000 CBM/day.

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