SSESSMENTS.COM’s pricing database found that India domestic PVC prices are moving in different directions as the country continues to record more coronavirus cases. On Saturday, June 13, India recorded its biggest single-day jump in coronavirus cases, adding 11,458 confirmed infections and taking its total count to more than 300,000-mark. Tamil Nadu, a South Indian state, has registered close to 45,000 positive cases and 435 deaths so far. As the pandemic crisis continues to be a threat in Tamil Nadu, the state government has reimposed a complete lockdown in four districts starting from June 19 until June 30, 2020. A maximum restricted lockdown will be imposed in Chennai, Chengalpattu, Thiruvallur and Kanchipuram for 12 days.
As stated to SSESSMENTS.COM, a sudden jump in coronavirus has raised a huge concern among Indian market players. If more Indian states reinforced the lockdown, some sources mentioned that a large number of suppliers might find difficulties in arranging materials delivery to customers as the lockdown restrictions will cause challenges for the logistics and shipping industry in India. Despite a spike in new infections of the coronavirus raised concerns of a second wave, most local producers and traders maintained a stable offer level for local and localized ethylene-based PVC prices in the open market, while some made the decision to adjust down their offers on the back of sour downstream demand. Domestic demand has gradually entered its seasonal slowdown as the monsoon season kicks in. The monsoon season in India lasts from June to September in most parts of the country. Since demand for end-products is projected to decline further during the rainy season, some buyers prefer to stick to procurement from the local market than import material considering the lead time.
The five most affected states in India, Maharashtra, Tamil Nadu, Delhi, Gujarat, Uttar Pradesh have continued to see a surge in Covid-19 infections. Maharashtra state remained the worst-hit region with a total number of confirmed cases more than 100,000-mark. Most converters within the region keep struggling to run the production at the normal capacity as the companies are facing a massive manpower shortage due to health and safety guidelines.
In Delhi, a local trader has initiated a price reduction of between INR1,000-2,000/ton ($13-26/ton) on localized Japanese ethylene-based PVC cargoes from a week earlier, captured at INR72,000/ton ($950/ton) on cash, EXW basis and excluding 18% GST. Sluggish demand was cited as a factor pushing the trader to lower their offers this week. A second trader also from Delhi made a larger downward adjustment on localized Taiwanese and South Korean cargoes between INR2,000-3,000/ton ($26-39/ton). "If compared to the beginning of last week, our offers are stable, however, compared to mid of last week, we have decided to make a price cut," the trader said. Similarly, an Indian trader based in Mumbai adjusted down offers for localized Taiwanese ethylene-based cargoes by INR1,000/ton ($13/ton) as compared to the beginning of last week due to lower demand in the market. Current offers from the trader are available at INR72,000/ton ($950/ton) on cash, EXW basis and including 18% GST, SSESSMENTS.COM was informed.
