Published on November 17, 2014

The plywood and laminate manufacturers are clouted again by the sink in demand and continuous listlessness in the real estate sector. Market players said that housing sector is a noteworthy source of demand for Laminate industry; this Deepawali did not bring any optimism for builders which have hampered the profit margins of plywood trade.

Report said that the high interest rate and unbending outlook of RBI is obstructing the stimulation of the housing sector. The slowdown in real estate had halted the growth of the plywood sector.

According to market sources the lower prices of crude oil in international market have lowered the prices of related chemicals such as Phenol and Formaldehyde. In the second fortnight of October month Phenol prices have reduced by approx 20 percent, but demand for Laminate and plywood sector was weak due to this reason trader was feeling pressure.

Market players said that recently laminate players have been going through tough competition and margin loss.  Now is the time when demand will catch the move as raw material prices have been falling. To keep in mind all this, dealers have to motivate to manufacturers to invest money in promotion, awareness of the innovative product and maintaining good quality of the products. These positive sentiments will boost the demand, margin level and cash flow in upcoming month.