Softening Melamine prices have given big relief to the entire wood and decorative Panel Industry and Trade, which reached an all time high to above 300 level during September-October period. After the second half of the November month, the prices of Melamine have reached back to the August 2021 level. Industry has viewed this development of mixed kind of response.On Melamine prices, as some say, it is temporary and it will rise again, whereas some view that it will stay on 200 to 225 range for now.
Melamine is a significant chemical for making decorative laminates, High Moisture Resistance Grade MDF and MR grade Plywood. The skyrocketing prices of Melamine had disturbed entire eco-system and manufacturers were forced to ask new prices on every load, but the softening prices will give big relief to industry because ruckus in the market due to price hike may lead to stability
The sudden price rise of melamine had created an outcry in the industry in October Month. According to the industry reports the price of melamine reached above Rs 300, despite there was a crisis of availability of melamine before the units. Many manufacturing units had shut their production of economical grade products such as Liners laminates.
The Ply reporter estimates that ‘Wood Panel and Decorative laminate industry and few other segments consume approximately twelve thousand MT melamine every month. Surge in capacities added in MDF, Prelam, flooring and Laminate industry led to the rise in demand for Melamine. With growing demand for Melamine, the local industry has become more dependent on imported Melamine because the domestic producer feeds approximately 25 to 30 percent of the total requirement.
Melamine is used for making melamine formaldehyde resin, which in turn is majorly used in producing Laminates, Plywood, MDF, Particle Boards etc. Melamine formaldehyde resins used for good hardness, resistance to scratch, stain, water and heat. The Ply Reporter finding indicates that Melamine consumption has increased by double during the last 4 years due to massive expansion in production capacities of Decorative Laminates, MDF, Plywood and Particle Boards.