An Indian trader told SSESSMENTS.COM that domestic demand is affected by the arrival of the monsoon season and sets a domino effect that ends on localized PVC prices. As reported, the trader’s latest offers for localized ethylene-based PVC cargoes of South Korea and Taiwan origin lowered by INR1,500/ton ($19/ton) on a weekly comparison. Currently, the localized offers for both South Korean and Taiwanese cargoes are available at INR70,000/ton ($927/ton) on cash payment terms, and at INR71,000/ton ($940/ton) on 30 days credit terms. All offers on EXW Mumbai basis and excluding 18% GST. The trader further added that downward adjustment in PVC prices is in-line with the weakened demand in the domestic market.
Speaking of demand, the trader informed SSESSMENTS.COM that demand for PVC from the agricultural sector is starting to slow down due to the monsoon season that started kicking-in in the country. Likewise, demand for the PVC end-products related to the construction sector has yet to pick up due to the shortage of manpower.
In the days to come, low-priced cargoes purchased in May will arrive in India ports in the near term and will likely put pressure on domestic PVC prices. However, the trader cited that in August, demand may improve as most buyers need to replenish their stocks for the Diwali festival. Hence, relying on that sign of improvement in demand, local sellers might keep their offers firm. Pertaining to August shipment PVC offers from foreign suppliers, the trader opined to SSESSMENTS.COM that the outlook is rather unclear; it is better to wait until the end of July to get a clearer picture.
