One of the reasons why MDF players like Greenpanel and Rushil was doing well was very high container freight rates and no local supply. At the end of the day , MDF is a commodity and they had to compete with cheap imports in Pre-Covid era. Container freight rate is coming down at an accelerated pace and there is a fear that it may come down to a level where imports of MDF to India will again become competitive. This may be the reason why there is a pressure on both the counters (Green Panel, Rushil). It may be worthwhile to check with the management in next conference call about the level of container freight rate at which MDF imports will become competitive. Here is the chart of container freight rate.
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