West Asia conflict hits plywood supply, MP sales drop over 20%

Indore: Depleting inventories and restricted fresh supply from manufacturing units have created a shortage of plywood and laminates in Madhya Pradesh, with traders reporting sales dropping by over 20 per cent as the West Asia conflict disrupts raw material supply chains and pushes up prices.Plywood dealers across the state said fresh supplies from manufacturers have slowed sharply over the past two weeks as factories are hesitant to book new orders amid volatile raw material prices and uncertainty in supply chains.Narendra Bafna of the All Bharat Plywood and Laminate Trade Vyapari Association said stocks in the market are rapidly thinning."There is almost no inventory left in the market because supplies from manufacturers and suppliers have dried up. Prices are changing every day, and this has made business extremely difficult," Bafna said.Industry representatives said the plywood sector depends heavily on petrochemical inputs such as methanol, resins and formaldehyde used in adhesive chemistry. Since many of these materials are linked to Middle East supply chains, rising crude prices and uncertainty in chemical supplies are pushing up production costs.A plywood trader, Arvind Jain from Gwalior, said, "Supplies from factories have reduced in the past two weeks, and prices are changing frequently. Dealers are cautious about placing new orders because rates are fluctuating."