- PVC prices shifted at the end of the month on the back demand condition
- Extended lockdown in a certain area caused a shortage of workforce and logistic disruption
- Price and demand trend expected to shift in September
In June 2020, PVC price trend in India shifted at the end of the month. On the week commencing June 1, offers from the leading Indian PVC producer were available at INR68,500/ton ($919/ton) on cash, EXW basis. The producer claimed that this level was lower by INR3,000-4,000/ton ($39-53/ton) as compared to the offers in the open market. According to a local trader in the country, since the end of May, PVC prices across India were up by INR2,000/ton ($26/ton). As such, on the week starting June 8, the leading Indian PVC producer eventually increased the offers by INR2,000/ton ($26/ton) as compared to a week earlier. On the week June starting 15, PVC prices in India started to retreat. Some traders lowered offers for local PVC cargoes between INR1,000-3,000/ton ($13-39/ton) from a week earlier. In the following week, further reduction of INR1,500-2,500/ton ($19-32/ton) was captured from the traders’ end. At the end of the month, deals for the leading India PVC producer’s cargoes were achieved at the initial offer level, at INR73,000/ton ($979/ton) on cash, FD basis. For localized cargoes, Taiwanese ethylene-based PVC offers showed a reduction of INR1,000/ton ($13/ton) as compared to a week earlier, available between INR72,000-73,000/ton ($966-979/ton) on cash, EXW Nhava Sheva basis. All offers excluding 18% GST. SSESSMENTS.COM was told that the downtrend at the end of the month was attributed to softer demand, coupled with the appreciation of local currency towards the U.S Dollar.
In the import market, offers for July shipment emerged with increases of between $100-140/ton as compared to the offers for June shipment. PVC cargoes from the leading Taiwanese PVC producer for July shipment increased by $100/ton on a monthly comparison, available at $840/ton on LC at sight, CIF India main port basis. Before the Taiwanese producer announced the fresh offers for July shipment, on the week commencing June 8, offers for Japanese ethylene-based PVC cargoes were already available in the market at $830/ton. Market sources told SSESSMENTS.COM that the producer did not have much allocation. On June 15, the deals for South Korean cargoes captured lower by $20/ton from the initial offer level, at $820/ton. As of June 30, early August shipment offers from a Japanese PVC producer surfaced with a downward price correction of between $20-30/ton compared to the offers for July shipment.
As the Indian government eased the lockdown measures, customers found the confidence to build their inventory at the beginning of the month despite demand has yet back to normal. On the week commencing June 1, the consumption rate of PVC cargoes reached 60-70% from the normal volume. In the second week of the month, demand reported healthy, mostly supported by the agricultural and medical sector. Local PVC producers told SSESSMENTS.COM that their cargoes were already fully booked for June delivery. From the pipe sector, the producers already ran at the full capacity in the second week of June. However, demand from the construction sector was not as strong as from the agriculture sector due to labor shortage. Extended lockdown around Mumbai and Gujarat caused a shortage of workforce and also led to logistic disruption. Within the week commencing June 22, Chennai Port reported close due to the extended lockdown. As such, buyers from that area have to send the cargoes to Nhava Sheva Port and later distributed via land transportation. Fortunately, cargoes that previously held at Chennai Port can be moved immediately upon returning workers to load/unload materials following lockdown relaxation starting from June 30.
Looking into July, India market players expect that import PVC offers for August shipment will be stable or lower between $10-30/ton as compared to July shipment. The slow demand on the back of the monsoon season is predicted to drag import and local PVC prices. The slow PVC market predicted to last until August and will begin to improve in September once the rainy season is over, as stated to SSESSMENTS.COM.
Range of local/localized ethylene-based PVC offers between June 1 to June 5 on cash, EXW basis (excluding 18% GST in all terms)
| Origin | Transaction Type | Offers (INR/ton) | Equivalent in USD/ton | Delivery Location |
|---|
| South Korea | Offer Given | 74,000 | 993 | Chennai |
| India | Offer Given | 69,000 | 926 | Cuddalore |
| India | Sold | 69,000 | 926 | Cuddalore |
| Russia | Offer Given | 74,000-75,000 | 993-1,006 | Delhi |
| South Korea | Offer Given | 75,500-76,000 | 1,013-1,020 | Delhi |
| Taiwan | Offer Given | 76,000 | 1,020 | Delhi |
| India | Offer Given | 68,500 | 919 | Mumbai |
| India | Purchased | 70,150 | 941 | Mumbai |
| Japan | Purchased | 70,000 | 939 | Mumbai |
| Russia | Offer Given | 72,000 | 966 | Mumbai |
| South Korea | Offer Given | 72,000-73,000 | 966-979 | Mumbai |
| South Korea | Sold | 72,000-72,500 | 966-973 | Mumbai |
| Taiwan | Offer Given | 72,000-73,000 | 966-979 | Mumbai |
| Taiwan | Sold | 72,000-72,500 | 966-973 | Mumbai |
| Ukraine | Offer Given | 72,000 | 966 | Mumbai |
Range of import ethylene-based PVC offers between June 1 to June 5 on LC at sight, CIF India Main Port basis
| Origin | Transaction Type | Offers (USD/ton) |
|---|
| Germany | Offer Given | 780* |
| Germany | Offer Received | 780 |
| Indonesia | Offer Received | 780 |
| Japan | Offer Given | 800 |
| Japan | Offer Received | 830 |
| Japan | Sold | 800 |
| Saudi | Price List | 820 |
| Taiwan | Offer Given | 830 |
| Taiwan | Offer Received | 830 |
| Taiwan | Price List | 830 |
| Taiwan | Sold | 820 |
| USA | Offer Given | 780* |
Description: *Offers on LC 90 Days
Range of local/localized ethylene-based PVC offers between June 8 to June 12 on cash, EXW/FD basis (excluding 18% GST in all terms)
| Origin | Transaction Type | Offers (INR/ton) | Equivalent in USD/ton | Payment Term | Delivery Location |
|---|
| India | Purchased | 70,500 | 946 | FD | Bengaluru |
| India | Offer Given | 71,000 | 953 | EXW | Cuddalore |
| India | Offer Given | 75,000 | 1,006 | EXW | Delhi |
| India | Offer Given | 70,500-73,500 | 946-986 | EXW | Mumbai |
| India | Purchased | 69,500 | 933 | EXW | Mumbai |
| India | Sold | 70,500 | 946 | EXW | Mumbai |
| Russia | Offer Given | 72,000 | 966 | EXW | Ahmedabad |
| South Korea | Offer Given | 73,000 | 979 | EXW | Ahmedabad |
| South Korea | Offer Received | 72,000-73,000 | 966-979 | EXW | Mumbai |
| Taiwan | Offer Given | 73,000 | 979 | EXW | Ahmedabad |
| Taiwan | Offer Given | 74,000 | 993 | EXW | Delhi |
| Taiwan | Offer Given | 72,000-75,000 | 966-1,006 | EXW | Mumbai |
Range of import ethylene-based PVC offers between June 8 to June 12, CIF India Main Port basis
| Origin | Transaction Type | Offers (USD/ton) | Payment Term |
|---|
| Germany | Offer Received | 820 | LC 90 Days |
| Germany | Offer Given | 820 | LC 90 Days |
| Japan | Offer Received | 830 | LC 90 Days |
| Japan | Sell Idea | 850-890 | LC At Sight |
| Japan | Offer Received | 820-830 | LC At Sight |
| Saudi | Sold | 790-800 | LC At Sight |
| South Korea | Price List | 850 | LC At Sight |
| South Korea | Offer Given | 850-860 | LC 90 Days |
| South Korea | Price List | 845 | LC 60 days |
| South Korea | Price List | 840 | LC 90 Days |
| South Korea | Offer Received | 820-850 | LC At Sight |
| Taiwan | Offer Received | 830-840 | LC At Sight |
| Taiwan | Offer Given | 840 | LC At Sight |
Range of local/localized ethylene-based PVC offers between June 15 to June 19 on cash, EXW/FD basis (excluding 18% GST in all terms)
| Origin | Transaction Type | Offers (INR/ton) | Equivalent in USD/ton | Delivery Term | Delivery Location |
|---|
| India | Purchased | 73,000 | 979 | FD | Bengaluru |
| India | Offer Given | 71,200-73,500 | 955-986 | EXW | Mumbai |
| India | Purchased | 72,000 | 966 | EXW | Mumbai |
| Japan | Offer Given | 72,000 | 966 | EXW | Delhi |
| Japan | Purchased | 76,000 | 1,020 | EXW | Kolkata |
| Japan | Purchased | 72,500 | 973 | EXW | Mumbai |
| Russia | Offer Given | 72,500 | 973 | EXW | Delhi |
| Russia | Offer Given | 71,000-72,000 | 953-966 | EXW | Mumbai |
| South Korea | Offer Given | 71,500-72,000 | 959-966 | EXW | Ahmedabad |
| South Korea | Offer Given | 74,000 | 993 | EXW | Delhi |
| South Korea | Offer Given | 73,000-74,000 | 979-993 | EXW | Mumbai |
| Taiwan | Offer Given | 71,500-72,000 | 959-966 | EXW | Ahmedabad |
| Taiwan | Offer Given | 74,000 | 993 | EXW | Delhi |
| Taiwan | Offer Given | 71,500-74,000 | 959-993 | EXW | Mumbai |
| Taiwan | Offer Given | 73,000-74,000 | 979-993 | EXW | Nhava Sheva |
| Ukraine | Offer Received | 75,000 | 1,006 | EXW | Chennai |
| Ukraine | Offer Given | 71,000-72,000 | 953-966 | EXW | Mumbai |
| USA | Offer Received | 72,000-73,000 | 966-979 | EXW | Mumbai |
Range of import ethylene-based PVC offers between June 15 to June 19 on LC at sight, CIF India Main Port basis
| Origin | Transaction Type | Offers (USD/ton) |
|---|
| Japan | Bid Given | 870 |
| Japan | Offer Given | 880-900 |
| Japan | Offer Received | 880 |
| Japan | Sold | 880-900 |
| Saudi | Buy Idea | 785-790 |
| South Korea | Offer Received | 840-845 |
| South Korea | Sell Idea | 830 |
| South Korea | Purchased | 820 |
| Taiwan | Offer Given | 840 |
| Taiwan | Offer Received | 840 |
| Taiwan | Purchased | 830-840 |
| Thailand | Offer Received | 860-880 |
| USA | Offer Received | 760 |
Range of local/localized ethylene-based PVC offers between June 22 to June 26 on cash, EXW basis (excluding 18% GST in all terms)
| Origin | Transaction Type | Offers (INR/ton) | Equivalent in USD/ton | Delivery Location |
|---|
| India | Offer Given | 73,500 | 986 | Mumbai |
| Russia | Offer Given | 71,000 | 953 | Delhi |
| Russia | Purchased | 70,500 | 946 | Mumbai |
| Russia | Offer Given | 69,000-70,500 | 926-946 | Mumbai |
| South Korea | Offer Given | 70,000-71,000* | 939-953 | Ahmedabad |
| South Korea | Offer Given | 71,500 | 959 | Delhi |
| South Korea | Offer Given | 71,000-72,500 | 953-973 | Mumbai |
| Taiwan | Offer Given | 70,000-71,000* | 939-953 | Ahmedabad |
| Taiwan | Offer Given | 71,000-72,000 | 953-966 | Mumbai |
| Taiwan | Offer Given | 73,000-74,000 | 979-993 | Nhava Sheva |
| Thailand | Purchased | 70,500 | 946 | Mumbai |
Description: *Offers in 30 Days Credit Terms
Range of import ethylene-based PVC offers between June 22 to June 26 on LC at sight, CIF India Main Port basis
| Origin | Transaction Type | Offers (USD/ton) |
|---|
| Europe | Offer Received | 850* |
| Europe | Price List | 850* |
| Far East Asia | Offer Received | 1,070 |
| Far East Asia | Price List | 840 |
| Far East Asia | Offer Given | 840 |
| North America | Offer Given | 780-800 |
| North America | Purchased | 720 |
| South Africa | Offer Received | 810* |
| South America | Purchased | 770 |
| South America | Offer Received | 805* |
Description: *Offers on LC 90 days
Range of local/localized ethylene-based PVC offers between June 29 to June 30 on cash, EXW/FD basis (excluding 18% GST in all terms)
| Origin | Transaction Type | Offers (INR/ton) | Equivalent in USD/ton | Delivery Term | Delivery Location |
|---|
| India | Offer Received | 72,000 | 966 | EXW | Mumbai |
| India | Purchased | 73,000 | 979 | FD | Bengaluru |
| Japan | Offer Given | 71,000 | 953 | EXW | Delhi |
| Mexico | Offer Given | 69,000 | 926 | EXW | Mumbai |
| Russia | Offer Given | 70,500 | 946 | EXW | Mumbai |
| Russia | Offer Given | 71,000 | 953 | EXW | Delhi |
| South Korea | Offer Given | 71,000-72,500 | 953-973 | EXW | Mumbai |
| Taiwan | Offer Given | 71,000 | 953 | EXW | Delhi |
| Taiwan | Offer Given | 70,000-71,000 | 939-953 | EXW | Mumbai |
| Taiwan | Offer Given | 72,000-73,000 | 966-979 | EXW | Nhava Sheva |
| Thailand | Offer Received | 70,000 | 939 | EXW | Mumbai |
| Thailand | Offer Given | 71,000 | 953 | EXW | Mumbai |
Range of import ethylene-based PVC offers between June 29 to June 30, CIF India Main Port basis
| Origin | Transaction Type | Offers (USD/ton) | Payment Term |
|---|
| Europe | Offer Received | 770 | LC at sight |
| Far East Asia | Offer Received | 850-860 | LC at sight |
| North America | Offer Received | 780-800 | LC 90 days |
| North America | Offer Received | 800* | LC at sight |
Description: *July shipment offers
Tags: Asia Pacific,English,ISC,India,Monthly,PVC
Published on July 6, 2020 3:01 PM (GMT+8)
Last Updated on July 6, 2020 3:01 PM (GMT+8)
