Indian PVC market demand is surging after the government relaxing lockdown restrictions, market sources told SSESSMENTS.COM. An Indian PVC producer told that the company’s offers to the local market are at INR63,000/ton ($838/ton) on cash, EXW Cuddalore basis, excluding 18% GST, a decrease of INR3,500/ton ($46/ton) with effect from May 1. The producer also stated that the company is enjoying daily sales increment from around 25-30% in the last ten days to 65% after the government relaxing the lockdown restrictions, causing a gradual increase in the converters’ production rates.
A trader contacted by SSESSMENTS.COM also informed the improving situation and predicted an increase in demand by 30-40% in the near term. The trader also said, "If the Indian market recovers in the near term, there will be a shortage in supply for PVC resins. It happens because almost no import cargo is entering India from April to early May; meanwhile, Indian PVC producers themselves export their products."
The trader mentioned that the company will not be releasing their cargoes at present as waiting for prices to rebound in proportion to costs when buying the cargoes. Meanwhile, the producer source also said to SSESSMENTS.COM that local PVC offers in India should have been bottomed out; there should not be any decreases onward. Additionally, the limited supply from foreign suppliers, such as South Korea’s LG Chemical Ltd and Japan’s Taiyo Vinyl Corporation on the back of the upcoming maintenance shutdown at their PVC plant should provide some support to local prices.
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