monthlyssessments-may-india-pvc-prices

Download PDF

Demand for PVC in India improved week by week during May
Since May 18, manufacturers in Mumbai and Delhi were allowed to run at maximum 50% capacity
Market players opined the possibility for further upward adjustments on local PVC prices is high

On 1 May, the Ministry of Home Affairs (MHA) and the Government of India further extended the lockdown period to May 17, with some relaxations. Regions were categorized into three zones: red, orange, and green. Market activities resumed, but local ethylene-based PVC prices were corrected down by INR3,500/ton ($46/ton). Adding to the downward adjustments, a local PVC producer also provided discounts of INR2,000/ton ($26/ton) for minimum purchases of 500 tons to attract buyers. In the second week, SSESSMENTS.COM was informed that local offers increased by INR1,000/ton ($13/ton) from levels a week earlier due to better buying sentiment. Although India extended lockdown that was supposed to be lifted on May 17 in areas labelled as red zones to the end of the month, the uptrend in local PVC prices was still seen in the third week as additional relaxation on the rules was applied.

In this particular week or on May 18, most local producers increased offers by INR2,000/ton ($26/ton) from the previous offers following the increase in import offers. Meanwhile, market players informed that a local producer applied an upward adjustment of INR6,000/ton ($80/ton) from the last offers, however, the producer claimed the statement as untrue. On May 21, the leading Indian PVC producer increased offers by another INR2,000/ton ($26/ton), hence, the total increments made by the producer in the third week of May was INR4,000/ton ($53/ton). In the last week of the month, local offers in the open market were recorded at INR2,000/ton ($26/ton) higher than the previous week. For localized ethylene-based PVC from Taiwan, South Korea and Russia, offers also went up between INR1,000-1,500/ton ($13-20/ton) compared to the same period. On May 28, the leading Indian PVC producer raised offers by INR2,000/ton ($26/ton). Following the step, a local producer informed SSESSMENTS.COM on May 29 that the company also increased offers by the same amount.

From the import market, cargoes of Russia origin were offered at $620/ton on LC at sight, CIF India main port basis while offers from Ukraine stood at $650/ton on LC 90 days and the same delivery term in the week commencing May 4. However, market talks have it that deals for cargoes of the two origins were below $600/ton-level. On May 19, June shipment offers from the leading Taiwanese PVC producer surfaced at $740/ton on LC at sight, CIF Nhava Sheva port before volume discount. On the same day, a Japanese PVC producer announced that offers to India stood at $760/ton with the same payment and delivery term. No monthly comparison for both origins as the producers did not have offers for May shipment to the country due to the lockdown, SSESSMENTS.COM noted.

Demand for PVC in India improved week by week during May. More and more manufacturers resume operation after the government loosened lockdown rules. In the first two weeks of the month, the production rate of the converters in the orange and green zone increased up to 70-80% for the small ones and 50-70% for the big ones. Meanwhile, manufacturers in the red zones like Mumbai and Delhi remained shut at this particular time, but the manufacturers made procurements to secure stock since prices were predicted to move higher. In the week commencing May 18, manufacturers in Mumbai and Delhi were allowed to run at maximum 50% of the normal production rate. By the end of the month, a global trading house commented to SSESSMENTS.COM that demand for PVC in India had increased to 50-60% of the normal demand in the country. For the end product, robust demand was reported for PVC pipes supported by the agriculture sector. On the supply side, the availability of materials in the market was limited due to fewer import cargoes entering the country coupled with good demand.

Entering June, the majority of market players in India believe that the possibility for further upward adjustments on local PVC prices is high. A local producer opined to SSESSMENTS.COM that there is a room for further upward adjustment between INR2,000-3,000/ton ($26-40/ton). Meanwhile, the healthy demand is predicted to last until the monsoon starts in mid-June or early July.

Click below to view related stories and content on India PVC:

WeeklySSESSMENTS: India PVC Prices Week Starting May 25

WeeklySSESSMENTS: India PVC Prices Week Starting May 18

WeeklySSESSMENTS: India PVC Prices Week Starting May 11

WeeklySSESSMENTS: India PVC Prices Week Starting May 4

Range of local/localized ethylene-based PVC offers between May 1 to May 8 on cash, EXW basis (excluding 18% GST in all terms)

Origin	Transaction Type	Offers (INR/ton)	Equivalent in USD/ton	Delivery Term	Delivery Location
India	Offer Given	62,500	831	EXW	Mumbai
India	Offer Given	63,000	838	EXW	Cuddalore
India	Purchased	62,000	824	FD	Bengaluru
Russia	Sell Idea	61,500-62,000	818-824	EXW	Delhi
Russia	Offer Given	59,500-60,000	791-798	EXW	Mumbai
Russia	Offer Given	61,500	818	EXW	Ahmedabad
Russia	Sold	61,500	818	EXW	Ahmedabad
South Korea	Sell Idea	65,000-66,000	864-877	EXW	Delhi
Taiwan	Offer Given	62,000	824	EXW	Mumbai
Taiwan	Sell Idea	65,000-66,000	864-877	EXW	Delhi
Thailand	Sell Idea	61,500-62,000	818-824	EXW	Delhi
Thailand	Purchased	61,000	811	EXW	Chennai
Ukraine	Offer Given	60,000	798	EXW	Mumbai

Range of import ethylene-based PVC offers between May 1 to May 8, CIF India Main Port basis

Origin	Transaction Type	Offers (USD/ton)	Payment Term
Russia	Offer Received	620	LC at sight
Ukraine	Offer Received	650	LC 90 Days

Range of local/localized ethylene-based PVC offers between May 11 to May 15 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	63,000	838	Cuddalore
India	Sold	63,000	838	Cuddalore
India	Offer Given	62,000-63,500	824-844	Delhi
Iran	Purchased	58,500	778	Mumbai
Japan	Purchased	61,000	811	Chennai
Russia	Offer Given	61,000	811	Delhi
Russia	Offer Given	60,000	798	Mumbai
South Korea	Offer Given	63,000	838	Delhi
Taiwan	Offer Given	63,000	838	Delhi
Taiwan	Offer Given	62,750-63,000	834-838	Mumbai
Taiwan	Sold	62,750-63,000	834-838	Mumbai
Thailand	Offer Given	61,000	811	Delhi
Ukraine	Offer Given	60,000	798	Mumbai

Range of import ethylene-based PVC offers between May 11 to May 15 on LC at sight, CIF India Main Port basis

Origin	Transaction Type	Offers (USD/ton)
Taiwan	Buy Idea	680-720

Range of local/localized ethylene-based PVC offers between May 18 to May 22 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 Given	65,000	864	EXW	Cuddalore
India	Sold	65,000	864	EXW	Cuddalore
India	Offer Given	64,500-66,500	858-884	EXW	Mumbai
India	Offer Received	63,000	838	EXW	Mumbai
India	Purchased	64,000	851	FD	Bengaluru
India	Offer Received	65,000	864	EXW	Kolkata
Russia	Offer Given	63,000	838	EXW	Mumbai
Russia	Sold	63,000	838	EXW	Mumbai
South Korea	Offer Given	71,000-72,000	944-957	EXW	Delhi
South Korea	Sold	71,000	944	EXW	Delhi
South Korea	Sell Idea	71,000-73,000	944-971	EXW	Mumbai
Taiwan	Sell Idea	71,000-73,000	944-971	EXW	Mumbai
Thailand	Offer Received	65,000	864	EXW	Chennai
Thailand	Offer Given	71,000	944	EXW	Delhi
Thailand	Bid Received	70,500	937	EXW	Delhi

Range of import ethylene-based PVC offers between May 18 to May 22, CIF India Main Port basis

Origin	Transaction Type	Offers (USD/ton)	Payment Term
France	Offer Received	710	LC at sight
Germany	Offer Received	690-730	LC at sight
Germany	Offer Received	700	LC 90 Days
Indonesia	Offer Received	730	LC at sight
Japan	Offer Given	760	LC at sight
Japan	Offer Received	750	LC at sight
Japan	Sell Idea	750	LC at sight
Norway	Offer Received	710	LC at sight
Russia	Offer Given	700	LC at sight
South Korea	Offer Given	730-740	LC at sight
South Korea	Offer Received	730-760	LC at sight
South Korea	Offer Received	740	LC 90 Days
South Korea	Sold	730	LC at sight
Taiwan	Sell Idea	720	LC at sight
Taiwan	Offer Given	740	LC at sight
Taiwan	Offer Received	730-740	LC at sight
Taiwan	Sold	730	LC at sight
Thailand	Offer Received	755	LC at sight

Range of local/localized ethylene-based PVC offers between May 25 to May 29 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	66,500-68,500	884-911	Mumbai
India	Offer Given	73,500	977	Ahmedabad
India	Sold	73,000	971	Ahmedabad
India	Offer Given	69,000	917	Cuddalore
India	Sold	69,000	917	Cuddalore
Russia	Offer Received	71,000	944	Mumbai
South Korea	Offer Given	74,000	984	Delhi
South Korea	Offer Received	72,000	957	Mumbai
Taiwan	Offer Received	72,000	957	Mumbai
Thailand	Offer Given	74,000	984	Delhi
Thailand	Offer Given	67,000-68,000	891-904	Mumbai
Ukraine	Purchased	70,500	937	Nhava Sheva
USA	Purchased	70,000	931	Chennai

Range of import ethylene-based PVC offers between May 25 to May 29 on LC at sight, CIF India Main Port

Origin	Transaction Type	Offers (USD/ton)
Japan	Sold	760
South Korea	Purchased	740
Thailand	Purchased	760
Thailand	Sold	740-760

Tags: Asia Pacific,English,India,Monthly,PVC

Published on June 2, 2020 10:46 AM (GMT+8)
Last Updated on June 2, 2020 10:46 AM (GMT+8)

MonthlySSESSMENTS: May India PVC Prices

Author: SSESSMENTS

MonthlySSESSMENTS: May India PVC Prices

Author: SSESSMENTS

Related posts

QuarterlySSESSMENTS: Q2 2020 India PVC Prices...

MonthlySSESSMENTS: June India PVC Prices...

NewsSSESSMENTS: PVC Prices In India Market Finding Their Footing...