Published on September 1, 2014

Excel of wood based panel products and laminates seems to be crumbling as the melamine prices have unpredictably elevated. The high pressure laminate producers are worried as they were already going through a cost burden due to high phenol prices since last month.

Report said that the increased input cost of high pressure laminates due to high prices of Phenol and craft paper is set to push up the prices of decorative laminate soon by different laminate producers.

As per the Laminate manufacturers, the input cost of per sheet of laminates production has jumped due to high prices of phenol or craft paper after a steep rise during May end and June months. The rising expenses on all other accounts apart from raw material are also causing an added burden on the whole. According to active people in the trade, market players are planning to announce the increased prices. It is to be noted that there has not been any price increase in decorative laminates from last one year and it may result to a sharp increase in per sheet prices of laminate.

Recently manufacturers have said that the profit margin has been squeezing every month as the cost burden is going high so they are planning not to spend an amount of profit to distributors.

They also feel that distributor model becomes a hurdle when company plans to increase its sales, due to this they have planned to do everything right from production to selling and to select good dealer in every city than going via distributors and add to the cost.