India: Exports up three months in a row
India’s merchandise exports rose to US$14.34 billion in
January, up 11.5 % from US$12.86 billion in the same
month last year. Exporters are increasingly looking for
new products and new markets as growth in traditional
markets such as the USA and Europe is stagnant.
Imports surge
Imports also surged in January, increasing by 35% to US $24.70 billion against US$18.22 billion a year ago. This is a signal of strong domestic demand and investment. India’s Industrial Output Index has also risen thanks to expanding output and new orders.
Housing market lifting prices
With the improving economic situation in India, it is not surprising that house building activity has increased. House prices in India are almost back to levels prior to the economic slowdown in 2008/9. This is translating into firming prices for wood and wood products in India and in countries where India is buying logs.
Custom duties in India’s budget
In the budget presented on 26th February, 2% has been added to Central Excise. This means that all wood panel products will attract a 10% counterveiling duty, making them approximately 2.5% more expensive (inclusive of surcharges). In the case of logs and sawn timber the duties remain the same, a disappointment for importers who were looking for a reduction.
Expanding forest cover.
As announced in the State of The Forests 2009 report, the net forest cover in India has expanded. The states reporting increased forest cover are: Himachal Pradesh, Arunachal Pradesh, Jammu and Kashmir, Sikkim Mizoram, Manipur Nagaland, Tripura Jharkhand, Orissa and Uttara khand. On the other hand, Assam, Andhra Pradesh and Chhattisgarh have reported declines in their forest area.
The losses of cover can be due to mining sector operations. The good thing is that there is a growing awareness of the importance of increasing the ‘green’ cover.
Investment in downstream production.
There is great potential for expanded panel product manufacturing in India but the main problem is the scarcity of wood raw materials. Under these circumstances, making composite panels using agricultural waste combined with wood chips is gaining momentum.
Several production lines have been set up for manufacturing agro-composite MDF and particleboard. One such unit has been established in Gujarat by Rushil Décor Limited using cotton stalks and wood.
Another factory has been built in Ankleshwar also in Gujarat, producing particleboard from a bagasse and wood mix. One more unit by Paralam Global Pvt Ltd is nearing completion at Nagpur Maharashtra using a similar mix of raw materials. Shivdhan Boards Pvt.Ltd. of Maharashtra is producing particleboard using a mix of bagasse, sawmill waste and small sized logs.
A few more plants are reportedly being planning and/ or executed to meet the growing demand for these panels as the base material for further lamination with paper / veneers/ PVC foils etc, for which there is a large market in India.
India
India
Sawnwood
Prices
(domestic)
India Sawnwood Prices (imports)
India Plywood Prices
Imports surge
Imports also surged in January, increasing by 35% to US $24.70 billion against US$18.22 billion a year ago. This is a signal of strong domestic demand and investment. India’s Industrial Output Index has also risen thanks to expanding output and new orders.
Housing market lifting prices
With the improving economic situation in India, it is not surprising that house building activity has increased. House prices in India are almost back to levels prior to the economic slowdown in 2008/9. This is translating into firming prices for wood and wood products in India and in countries where India is buying logs.
Custom duties in India’s budget
In the budget presented on 26th February, 2% has been added to Central Excise. This means that all wood panel products will attract a 10% counterveiling duty, making them approximately 2.5% more expensive (inclusive of surcharges). In the case of logs and sawn timber the duties remain the same, a disappointment for importers who were looking for a reduction.
Expanding forest cover.
As announced in the State of The Forests 2009 report, the net forest cover in India has expanded. The states reporting increased forest cover are: Himachal Pradesh, Arunachal Pradesh, Jammu and Kashmir, Sikkim Mizoram, Manipur Nagaland, Tripura Jharkhand, Orissa and Uttara khand. On the other hand, Assam, Andhra Pradesh and Chhattisgarh have reported declines in their forest area.
The losses of cover can be due to mining sector operations. The good thing is that there is a growing awareness of the importance of increasing the ‘green’ cover.
Investment in downstream production.
There is great potential for expanded panel product manufacturing in India but the main problem is the scarcity of wood raw materials. Under these circumstances, making composite panels using agricultural waste combined with wood chips is gaining momentum.
Several production lines have been set up for manufacturing agro-composite MDF and particleboard. One such unit has been established in Gujarat by Rushil Décor Limited using cotton stalks and wood.
Another factory has been built in Ankleshwar also in Gujarat, producing particleboard from a bagasse and wood mix. One more unit by Paralam Global Pvt Ltd is nearing completion at Nagpur Maharashtra using a similar mix of raw materials. Shivdhan Boards Pvt.Ltd. of Maharashtra is producing particleboard using a mix of bagasse, sawmill waste and small sized logs.
A few more plants are reportedly being planning and/ or executed to meet the growing demand for these panels as the base material for further lamination with paper / veneers/ PVC foils etc, for which there is a large market in India.
| Sawnwood
(Ex-mill) |
Rs.
per
ft3 |
| Myanmar Teak (AD) |
|
|
Export Grade F.E.Q.
|
5000-6000 |
|
Plantation Teak A
grade
|
2000-3600 |
|
Plantation Teak B
grade
|
1800-3000 |
|
Plantation Teak C
grade
|
1250-1500 |
India Sawnwood Prices (imports)
| Sawnwood,
(Ex-mill) (AD) |
Rs.
per
ft3 |
|
Merbau
|
1400 |
|
Balau
|
1150 |
|
Kapur
|
1000 |
|
Red Meranti
|
650 |
|
Bilinga
|
650 |
|
Radiata Pine (AD)
|
375-400 |
| Sawnwood,
(Ex-warehouse)
(KD) |
Rs
per ft3 |
|
Beechwood
|
1200 |
|
Sycamore
|
1250 |
|
Oakwood
|
1300 |
|
American Walnut
|
2250 |
|
Hemlock clear
grade
|
950 |
|
Hemlock AB grade
|
800 |
|
Western Red Cedar
|
1250 |
India Plywood Prices
| Plywood,
(Ex-warehouse) |
Rs
per ft² |
| 4 mm |
21.0 |
| 6 mm |
30.5 |
| 12 mm |
44.0 |
| 15 mm |
53.0 |
| 18 mm |
64.0 |
| Locally Manufactured Plywood “Commercial Grade” |
Rs per sq.ft | |
| Rubberwood |
Hardwood |
|
| 6mm |
Rs.12.00 |
- |
| 8mm |
Rs.15.00 |
Rs.24.0 |
| 12mm |
Rs.18.50 |
Rs.25.5 |
| 18mm |
RS.23.00 |
Rs.34.0 |
| 5mm |
Flexible ply Rs.15.0 |
|