Market sources informed SSESSMENTS.COM that the leading Indian PVC producer is exporting cargoes to global market. Market talks have it that the producer’s cargoes are being offered to Africa market at $780/ton on LC at sight, CIF Africa Main Port basis. As contacted by SSESSMENTS.COM’s team, a producer source confirmed that the company is exporting cargoes; not only to Africa market but globally. However, the source informed that the volume is small.
As SSESSMENTS.COM noted, India is the world’s largest PVC importer. India’s PVC demand is approximately 3 million tons/year, while the domestic capacity is only around 1.45 million tons/year, coming from Reliance, Chemplast, Finolex, DCW Ltd and DCM Shriram. As such, the country needs to import by around 50% to cater to domestic demand. The primary demand for PVC in India comes from agricultural and construction sector, with pipes and fittings industry as the major contributor accounting about 70% of total demand.
Slow domestic demand following 21-day nationwide lockdown imposed by the government and high inventory level are the major reasons behind the producer’s decision to export cargoes. As previously reported by SSESSMENTS.COM, the leading Indian PVC producer was forced to shut two of its PVC plants with a combined capacity of 445,000 tons/year since the end of March, citing high inventory level amid sluggish demand due to Coronavirus pandemic.
