WHY SHUTTERING PLYWOOD PRICE INCREASING DAY BY DAY?
Introduction
Shuttering plywood plays a crucial role in construction projects worldwide, particularly in forming concrete structures. Its robustness, ease of use, and versatility make it a staple material for builders and contractors. However, like many construction materials, the price of shuttering plywood is subject to fluctuation due to various economic, environmental, and market factors. Understanding these factors is essential to grasp why prices may increase over time.
Factors Influencing the Price of Shuttering Plywood
1. Raw Material Costs: Shuttering plywood is predominantly made from wood, typically sourced from trees such as pine, spruce, Eucalyptus or fir. The cost of these raw materials forms a significant part of the overall production expenses. Factors influencing raw material costs include:
- Timber Prices: Fluctuations in the prices of timber can stem from changes in supply and demand dynamics, environmental policies affecting logging practices, and natural disasters impacting forests. For instance, a severe wildfire season could reduce timber supply and drive up prices.
- Availability and Accessibility: Accessibility to timber-rich areas, transportation costs, and regulations governing forestry practices can all affect the availability and cost of raw materials for plywood production.
- Transportation Costs: Rising fuel prices or logistical challenges can lead to increased transportation costs, impacting the final price of plywood delivered to construction sites.
3. Market Demand: Demand for shuttering plywood is closely tied to construction activity levels, which can fluctuate due to economic cycles and infrastructure development:
- Construction Boom: During periods of rapid urbanization or infrastructure development, such as government-led construction projects or private sector investments, demand for plywood increases, exerting upward pressure on prices.
- Seasonal Variations: Construction activity often follows seasonal patterns, with peak demand during favorable weather conditions. This cyclic demand can influence plywood prices seasonally.
4. Regulatory and Environmental Factors: Government regulations and environmental policies can affect plywood production and pricing:
- Environmental Regulations: Stringent regulations on sustainable forestry practices, forest certification requirements (like FSC certification), and restrictions on logging in protected areas can limit timber supply and increase costs.
- Trade Policies: Changes in trade policies, tariffs, or international agreements affecting timber imports can disrupt supply chains and impact plywood prices.
5. Global Events and Trends: Global events and market trends can have ripple effects on plywood prices:
- Pandemics and Natural Disasters: Events like the COVID-19 pandemic or natural disasters such as hurricanes or earthquakes can disrupt supply chains, affecting raw material availability and pushing up prices.
- Geopolitical Tensions: Political instability or trade disputes between countries can lead to trade disruptions, affecting the availability and cost of plywood raw materials sourced internationally.
Conclusion
In conclusion, the increased price of shuttering plywood depends of many factors. The positive sign is that the rising price is being accepted by the market, pushing the sector. The report indicates that the real estate and construction sectors have helped the sector with rising demand for shuttering plywood, as the increased prices have been accepted by the trade every time.
In the last three months, the prices of shuttering plywood have increased to approx. Rs 8 to 10 per square foot in consecutive phases, and a nearly 25% rise in the price range in the last two years.
In total, after several rises, the shuttering plywood price has reached approx. Rs 56/sqft of 30 kg basis, which was nearly Rs 42/sqft two years ago. The experts say that the price of shuttering plywood may increase by 10 % in the near future.
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