What’s Up with MDF?
A growing market appetite and interesting industry dynamics have caused an exponential price drift for MDF since the last year.
As the global economy recovers, the reopening of sectors such as hospitality has resulted in an unusual demand spike, subsequently doubling the MDF prices in the last couple of months.
MDF Price Hike and Challenges Ahead
Mills have become very selective in prioritizing their supplies based on operational capabilities, volumes, partnerships and this has impacted smaller industry players.
MDF prices continue to rise
Will the prices go down? In short, no. In fact, the rising prices are expected to continue in the next quarter as well. Let us look at the following reasons.
- The burgeoning building and construction industry and home improvement projects.
- An organized furniture industry growing at a rate of 20% per year (World Bank Report).
- Increasing freight charges and import duties.
MDF Shortage 2021 & What is BRENLO doing?
- Hired more employees to meet production deadlines.
- Increased Stock inventory to maintain lead times and ensure timely deliveries.
- R&D on affordable alternatives.
- Strong Supplying partners.
Years ago, MDF disrupted the market as a cheaper alternative, however, the raised price is the new low now.
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