Different Factors Which Decides Plywood Board Prices in India

If you’re a regular buyer of timber or anything derived from plywood, you’ve probably seen the recent price spikes. According to the National Association of Home Builders, plywood board prices have risen by about 80% since April, sparking a flurry of rumors and speculation.

You’ve undoubtedly also heard the rumors. To some, it appears that corporations are only trying to compensate for the losses they will incur due to the required shutdowns by increasing their profit margins. However, many believe that mills and plywood manufacturers are deliberately undersupplying the market to create a bubble.

How much do you intend to purchase?

When it comes to fulfilling an order, most of the work is spent locating, retrieving, and moving the various components around the storage facility. No matter how much you purchase, the aggregate time required by this effort is the same. As a result, placing a large order usually results in lower plywood board prices than placing a small one.

What is its origin?

In the plywood sector, transportation is a significant cost factor. Exotics imported halfway around the world will be far more expensive to ship than locally sourced timbers. You will likely have to pay for inspection and taxes at each border that the plywood has to travel. Plywood Both domestic and international politics influence 4mm plywood prices. An African species, for example, may have to be carried via countries where civil conflicts are raging, increasing the risk and cost of shipping considerably.

Inventory:

Supply chain efficiency may be improved by streamlining the supply chain and ensuring a sufficient inventory level, saving money, and increasing productivity. However, when wood stockpiles run short, wood-consuming firms are typically obliged to buy wood on the open market at a premium since this flexibility comes at a cost. However, this technique is expensive but provides the necessary volume to keep a facility at its optimum production rate. Higher stumpage fees for landowners are available to mill suppliers when paying a premium to get their hands on wood.

Weather:

When it comes to rainy-season species, harvesting is usually limited to the driest months of the year, meaning supply and price might vary throughout the year. The availability and pricing of a product might be affected by an abnormally protracted wet season. Due to the nature of the area being harvested, harvesting activities tend to occur during the wet season. Because cypress trees may only be harvested during the dry season, it is extremely reliant on the weather conditions to be dry.

The year 2021 has unquestionably been one of the unparalleled occurrences. To this year’s list of firsts, we can now add the chain of events that led to the current state of the plywood market. So, when will 25mm plywood prices start to fall or, at the very least, slow down?

Plywood board prices have soared beyond anyone’s wildest dreams, and it’s impossible to predict just how far they’ll go or when they’ll bottom out. Everything is subject to market forces of supply and demand. 6mm plywood board prices will stay high as long as the available supply of plywood does not meet or surpass its demand.