- Local offers were scarce in the week commencing March 23 and March 30
- April shipment offers decreased significantly
- Nearly all PVC producers in India had to shut plants due to lockdown
In the first week of March, the leading Indian PVC producer announced local offers with a rollover and the early-bird discount of INR500/ton ($7/ton). Offers for localized cargoes of Taiwan origin increased by INR1,000/ton ($13/ton) compared to a week earlier. In the second week, most traders did not have offers while some maintain stable levels for localized materials. The traders ceased giving out offers because of significant drops in crude oil prices at the beginning of the week caused uncertainty in the international market. Therefore, traders opted to wait. On March 12, the leading Indian PVC producer declared a price protection. The decision led to decreases between INR500-1,000/ton ($7-13/ton) on the localized PVC offers on a weekly comparison in the beginning of the third week. On March 18, the producer withdrew the price protection and slashed local offers by INR2,500/ton ($33/ton). In the week commencing March 23 and March 30, availability of offers were scarce as India is on a lockdown.
From the import market, the first half April shipment offers from a Japanese PVC producer were maintained stable compared to March shipment offers. On March 18, SSESSMENTS.COM was informed that the producer decreased the offers for the second half by $70/ton compared to the same period to compete with the foreign PVC supplier to India. A day earlier, the leading Taiwanese PVC producer adjusted down April shipment offers by $50/ton to all markets. Offers from a Thai producer also decreased by $85/ton. All are compared to March shipment offers.
Based on market players’ reports to SSESSMENTS.COM, demand for PVC in India was weak in March. Until the third week of the month, the market was still active but sales were unsatisfactory due to the Coronavirus outbreak, the plunge in crude oil prices and expectation for lower prices ahead. The depreciation of Indian Rupee against US Dollars also had spoiled buying sentiment. In the week commencing March 23, market players reported that the India PVC market came to a standstill as the country is under lockdown for 21 days starting March 24. It is impossible to sell or deliver materials, hence, sellers had to face order cancelations from buyers. On the supply side, no issues were reported throughout the month.
On the production sector, the lockdown has caused PVC producers in India to shut plants or reduce operating rates. On March 30, India’s Chemplast Sanmar announced force majeure on the company’s PVC plant. The producer had to shut the EDC, Chlorine, Caustic Soda plants, as well as the 300,000 tons/year PVC plant. According to the producer, other PVC producers such as Finolex, DCW and DCM, had also shut their plant. Market sources told SSESSMENTS.COM that the only PVC producer running up to the time of publication is Reliance Industries Ltd, but the producer cut the operating rate by 25% of the normal rate.
Indian market players expressed concern to SSESSMENTS.COM over the ability of the PVC market to recover. The players mentioned that lockdown is effective up to mid April, but it might be extended. Before the market is fully recovered from the Coronavirus impacts, demand for PVC will be affected by the upcoming monsoon in June. Import offers are predicted to reach $600/ton-level.
Range of local/localized ethylene-based PVC offers between March 2 to March 6 on cash, EXW basis (excluding 18% GST in all terms)
| Origin | Transaction Type | Offers (INR/ton) | Equivalent in USD/ton | Delivery Location |
|---|
| Egypt | Offer Given | 73,000-73,500 | 975-982 | Delhi |
| India | Offer Given | 76,500 | 1,022 | Cuddalore |
| India | Purchased | 71,500 | 955 | Mumbai |
| India | Purchased | 72,500 | 969 | Chennai |
| Japan | Offer Given | 74,000 | 989 | Delhi |
| South Korea | Offer Given | 75,000-76,000 | 1,002-1,015 | Delhi |
| Taiwan | Offer Given | 74,000-76,000 | 989-1,015 | Delhi |
| Taiwan | Offer Given | 73,500-74,000 | 982-989 | Mumbai |
| Taiwan | Purchased | 70,500-71,000 | 942-949 | Mumbai |
| Thailand | Offer Given | 75,000-76,000 | 1,002-1,015 | Delhi |
| Ukraine | Offer Given | 73,000-75,000 | 975-1,002 | Delhi |
Range of import PVC offers between March 2 to March 6 on LC at sight, CIF Nhava Sheva Port
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| China | Acetylene-based | Offer Received | 810-820 |
| Japan | Ethylene-based | Offer Given | 970-980 |
| Japan | Ethylene-based | Offer Received | 960-980 |
| Japan | Ethylene-based | Purchased | 970 |
| Japan | Ethylene-based | Sold | 960-970 |
| Ukraine | Ethylene-based | Offer Received | 890 |
| Ukraine | Ethylene-based | Bid Given | 870 |
Range of local/localized ethylene-based PVC offers between March 9 to March 13 on cash, EXW basis (excluding 18% GST in all terms)
| Origin | Transaction Type | Offers (INR/ton) | Equivalent in USD/ton | Delivery Location |
|---|
| Egypt | Offer Given | 73,000-73,500 | 975-982 | Delhi |
| India | Offer Given | 76,000 | 1,015 | Mumbai |
| Japan | Offer Received | 75,500-76,500 | 1,009-1,022 | Kolkata |
| Russia | Sell Idea | 71,000 | 949 | Bhiwandi |
| South Korea | Offer Given | 72,500-73,000 | 969-975 | Gujarat |
| South Korea | Offer Received | 73,000 | 975 | Mumbai |
| South Korea | Offer Given | 76,000 | 1,015 | Delhi |
| Taiwan | Offer Given | 76,000 | 1,015 | Delhi |
| Taiwan | Offer Received | 71,000-73,000 | 949-975 | Mumbai |
| Taiwan | Offer Received | 75,500-76,500 | 1,009-1,022 | Kolkata |
| Taiwan | Sell Idea | 73,250-73,750 | 979-985 | Bhiwandi |
| Thailand | Offer Given | 75,000-75,500 | 1,002-1,009 | Delhi |
| Ukraine | Offer Given | 74,500-75,000 | 995-1,002 | Delhi |
Range of import PVC offers between March 9 to March 13 on LC at sight, CIF Nhava Sheva Port
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Russia | Ethylene-based | Offer Received | 871 |
Range of local/localized ethylene-based PVC offers between March 16 to March 20 on cash, EXW basis (excluding 18% GST in all terms)
| Origin | Transaction Type | Offers (INR/ton) | Equivalent in USD/ton | Delivery Location |
|---|
| Egypt | Offer Given | 72,500-73,000 | 969-975 | Delhi |
| India | Offer Received | 76,000-77,000 | 1,015-1,029 | Mumbai |
| India | Offer Given | 73,500-76,000 | 982-1,015 | Mumbai |
| Japan | Offer Received | 75,000-76,500 | 1,002-1,022 | Kolkata |
| Japan | Purchased | 74,500 | 995 | Kolkata |
| Mexico | Offer Received | 70,000 | 935 | Mumbai |
| Russia | Offer Given | 70,000-70,500 | 935-942 | Mumbai |
| Russia | Offer Received | 70,000 | 935 | Mumbai |
| Singapore | Offer Given | 73,000-74,000 | 975-989 | Delhi |
| South Korea | Offer Given | 73,000-75,500 | 975-1,009 | Delhi |
| South Korea | Offer Given | 72,500-73,000 | 969-975 | Gujarat |
| Taiwan | Offer Given | 73,000-74,000 | 975-989 | Delhi |
| Thailand | Offer Given | 74,500-75,000 | 995-1,002 | Delhi |
| Ukraine | Offer Given | 74,000-74,500 | 989-995 | Delhi |
Range of import ethylene-based PVC offers between March 16 to March 20, CIF India Main Port basis
| Origin | Transaction Type | Offers (USD/ton) | Payment Term |
|---|
| Japan | Offer Given | 900-910 | LC 90 days |
| Japan | Offer Received | 900-930 | LC at sight |
| Singapore | Offer Received | 860 | LC at sight |
| South Korea | Offer Received | 845-850 | LC 90 days |
| South Korea | Offer Received | 840-850 | LC at sight |
| Taiwan | Price List | 835-860 | LC at sight |
| Taiwan | Offer Given | 850-860 | LC at sight |
| Taiwan | Offer Received | 850-860 | LC at sight |
| Taiwan | Purchased | 840 | LC at sight |
| Taiwan | Sold | 850 | LC at sight |
| Taiwan | Offer Received | 860 | LC 90 days |
| Taiwan | Offer Received | 835 | TT |
| Thailand | Offer Received | 865 | LC 90 days |
| Ukraine | Offer Received | 835 | LC 90 days |
Range of local/localized ethylene-based PVC offers between March 23 to March 27 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 | 982 | Mumbai |
Range of import PVC offers between March 23 to March 27, CIF India Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Payment Term |
|---|
| China | Acetylene-based | Offer Received | 780 | LC at sight |
| Japan | Ethylene-based | Sold | 900-910 | LC 90 days |
| South Korea | Ethylene-based | Offer Received | 845-850 | LC 90 days |
| South Korea | Ethylene-based | Offer Received | 835 | LC at sight |
| Taiwan | Ethylene-based | Offer Given | 850-860 | LC at sight |
| Taiwan | Ethylene-based | Offer Received | 850 | LC at sight |
| Taiwan | Ethylene-based | Purchased | 840 | LC at sight |
Range of local/localized ethylene-based PVC offers between March 30 to March 31 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 | 982 | Mumbai |
Tags: Asia Pacific,English,India,Monthly,PVC
Published on April 1, 2020 4:31 PM (GMT+8)
Last Updated on April 6, 2020 1:39 PM (GMT+8)
