The shadow of tough MDF and Particle Boards market is clearly reflecting on machinery MDF - PB line suppliers. This time in Delhi wood exhibition, the MDF - PB plants machinery and solution providers received much subdued response. Talking to the Ply Reporter correspondent machinery suppliers from Europe and China confirmed that they didn't get any new orders though they received many casual queries for their machines. Machinery suppliers felt gloom over this segment because they came to the show expecting some new orders, which had been a routine practice during previous shows.
A China based machinery maker says to the Ply Reporter that he had more than 12 serious queries during last Delhi show of which some queries were converted into orders. But this time, he is disappointed to the response received from the industry fraternity in India. Although few of the machine companies are expecting some new orders of midsized Particle Boards plant in Uttar Pradesh, but they are still waiting for advance.
Machinery sources also confirmed the cancellation of 2 - 3 orders of MDF plants which they had received last year. They informed that some investors are requesting to delay the delivery or pause for long time because the present situation of MDF market is difficult. The overall scenario felt by machine suppliers were similar to the situation on ground, where present MDF capacity utilization is around 40 % and the capacity is too high than normal benchmark.
It is noted that MDF market is reeling under tremendous competition hence prices have dropped 20 to 25 percent in general. The down fall has impacted the realization and margin to industry up to great extent. The Ply Reporter estimates that, reaching to 80 to 90 percent capacity utilization for existing plants will take another 3 years till then market of MDF will remain aggressive and highly competitive where place for small players will be very cramped. The particle board factories too have witnessed similar state though in wood based PB segment, the industry has eased after Associate' plant supplies gone. There are possibilities when North India will witness a few new entrants in particle board segment.