Major firms launched full-category price hikes on August 9, lifting ENF/E0/E1 grades by 5 CNY—this year's first across-the-board adjustment. Cost pressure was the core driver per official notices.

Raw material costs surged most: August wood prices rose 10-50 CNY/cbm, adhesive materials 8%-12%. S. Korea's anti-dumping duties on Thai particleboard shifted imports to China, intensifying raw material competition.

Policy costs rose too: a new odor national standard took effect July 30, pushing equipment upgrade costs up 15% industry-wide. With 23% MoM order growth but 62% capacity utilization, price hikes became inevitable.

Shortly after the price hike, Fenglin Group announced its low-odor particleboard passed China National Forest Products Industry Association appraisal as "internationally advanced," boosting industry upgrading.

Traditional particleboard has formaldehyde/odor issues from urea-formaldehyde adhesives, unfit for sensitive areas. Fenglin's tech (raw material optimization, adhesive modification) solved this: odor grade <2, formaldehyde near ENF standard, strength exceeding P3 requirements.

The tech quickly gained market traction, used in cabinets, children's rooms, hotels and hospitals with orders through November. Analysts note it will upgrade particleboard to "healthy materials," with high-end premiums over 20%.

Clear differentiation emerged: leaders like Fenglin and Daya maintained over 80% capacity utilization post-hike, with high-end supply shortages. SMEs cut profits to retain orders, widening gross margin gap to 10pp.

Downstream buyers adjusted strategies: customized furniture firms increased high-end particleboard purchases, using prepayments and long-term contracts to hedge risks. Early adopters gained 15-20% terminal premiums.

Experts predict the industry will enter a "tech-driven era." Low-odor/functional particleboard may take over 30% market share by 2026, with uncompetitive SMEs facing elimination and higher concentration.