Plywood & panel industry may see frequent price rise in 2026

The plywood & panel industry is experiencing significant upward price pressure in 2026, with manufacturers across India implementing hikes ranging from 5% to 15%. While supply chains stabilized somewhat after the pandemic, new geopolitical tensions and domestic raw material shortages have triggered a fresh cycle of cost increases. 

The recent surge is primarily driven by a convergence of rising input costs and supply-side constraints: 

Timber Scarcity: Prices for critical timber species like Poplar and Eucalyptus have risen by 10–15% due to seasonal shortages, lower tree-felling rates. Popular prices was reported to have reached a new peak of 1700-1750 for superior grades, while eucalyptus reaching at 1300-1350 per quintal.

Imported timber price has also surged due to increase in sea freight as well as several. Taxes imposed by exporting countries. Those industries who were using imported timber and core, exclusively for their production, has also diverted their purchase with local timbers. It has put extra pressure and demand on indigenous timber.

Adhesive & Chemical Costs: The price of Formaldehyde Phenol, Melamine and every other petroleum-based resins has spiked due to volatile crude oil rates, directly raising production costs

Every chemical has shown a fifty per cent jump in a month, after the conflict of Iran-US-Israel. Major refineries and LNG plants in Middle East are severly damaged, forcing them to suspend or curtail the relevant production.

Ongoing tensions in West Asia and other regions have disrupted supply chains, leading to a reported 10-15% surge in raw material material costs, including MR & BWP or shuttering plywood, while laminates, MDF and PB are also facing the same heat.

Devaluation of Rupee: The rupee’s continued sharp depreciation against the dollar, is putting additional pressure on the prices of all key raw materials. Industry experts predict the rupee could touch Rs 100 mark anytime during the year, further diminishing the likelihood of stable prices.

Industry Outlook

Continued Volatility: Analysts predict that while prices may see marginal 2–3% stabilizations in certain quarters, the overall 2026 outlook remains “range-bound with periodic spikes” due to non-deflating structural costs.

However industry leaders are praying for a early solution of the war, still everyone is clueless for the future inflation, as it  may take a long period to repair the damaged infrastructure in the middle east.

Industry may have to hike prices frequently, during the year 2026, to absorb the rising-volatile input costs.

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