Only after China, India has the 2nd largest population in the world. The sustainable growth of Indian economy and growing purchase power is making it a favoured export market for many countries. China plywood manufacturers have began taking India as a serious emerging export market and are bringing changes to suit Indian consumers need in plywood.
Years ago Chinese ply mills were strict with their terms, specfications and quality for exporting to India but now when demands in rest of the world is not so good, they have become attentive to the Indian market. They have also customized the products as per market need such as glue types, core veneer structures, thickness, material options, payment terms, price etc. China is also a major exporter of plywood to USA and EU but due to environment and strict regulations such as formaldehyde emissions CARB P2, FSC certified wood, small mills are finding their exports to these market becoming very difficult.
Trade experts say that plywood holds only 5% of wood based panel market share in Europe and USA but the Indian market is just very different. This fact attracts plywood manufacturing countries of world such as China, Malaysia, Indonesia and Burma to India.
Only Cheap Plywood made in China?
It is common perception that the Chinese companies produce only cheaper grade plywood, but the fact is Chines manufacturers are able produce the best quality plywood for the world. The high price of timber and uncertain approach on plantation front is creating an atmosphere where not only China manufacturers but plywood producers of other places are targeting Indian market.
Chinese Plywood Advantage
Reporters visit to factories in China found that plant area and shades are big which make their handling very smooth and finally bring down production wastage. Unlike Indian mills, the Chinese manufacturers are focused to a single material like either plywood or only teak plywood or doorskin plywood etc. This practice increases output and also controls the input costs of raw material as it needs same manufacturing facility and smooth production control. There are few better techniques and machines for optimum utilization of timber. China suppliers are making pre-pressed and calibrated plywood that increase the quality of products.
The Weakness of Imported Chinese Plywood
- Image are such that it is not easy for importers to represent Chinese plywood into quality conscious market segment.
- The quality in every container may be different if the importer is not visiting for inspection.
- Considering port distance many remote areas don’t work out so economical.
- Fluctuations in Yuan and Dollar against Rupee pose uncertainty in some market change.
- There is always a limitation in size and thickness of plywood from China.