In less than 3 weeks, MDF producers are lining up to announce 10 percent hike effective from 10th April. It’s an unprecedented move which is showing the complete reverse turn of scenario in MDF sector. In fact Ply Reporter NEW’s flash reported 3 days ago from its social media handles and plyreporter.com about the possible rise in every wood panel and decorative category. But 10% increase in one go is a matter of surprise. Specially when MDF industry has been witnessing an oversupply scenario since a year.
After Covid 19 time during 2020, it’s first time that India based MDF manufacturing companies are announcing a 2 consecutive price increase by whopping 5 and 10% within a fortnight or can say a net 15% price jump in less than 20 days in MDF, HD+MR and BOIL features category.
Statement from large and small MDF manufacturing companies shows it’s a survival effort by passing on the surging cost due to various raw material chemicals that originates from Middle East and war impacted region.
Mr Ajay Garg from All INDIA MANUFACTURERS ASSO, said that “Due to continued and significant rise in the cost of raw materials, the previously announced price increase of 5% that was already scheduled in now revised and effective from April 10th 2026. In order to offset the rising costs of raw materials without compromising quality standards, the upcoming price adjustment is vital for survival of MDF industry. Till writing this news a dozen are reported to be drafting their letters.
A similar scenario is evident in laminate and plywood category. In a move by the Government of India to prevent industries from rising costs of chemicals, the import duties on chemicals have been brought to nil, the impact is not mitigated. Government announcement included methanol which is key raw material for formaldehyde resins that are used in MDF and HDF categories. But it’s merely 2.5% on Methanol and that is to have very minimal impact in coming time hence MDF prices are not to see any ease up till US-IRAN war stops or Hormuz strate gives way to free movement to vessels.