SSESSMENTS.COM was told that local PVC offers in India shifted further as triggered by international prices. Early this week, the leading Indian petrochemical producer had increased local PVC offers by INR2,000/ton ($26.5/ton) with effect from June 8. Following suit, a trader decided to adjust up localized South Korean, Taiwan and Russian ethylene-based PVC offers between INR500-1,000/ton ($6-13/ton) as compared to last week’s levels. However, as the rain has started pouring down in Gujarat in the last two days, the trader made a u-turn and lowered their offers again by the same amount. As such, the trader’s offers were basically unchanged from last week’s level similar to other traders’ offers that are also stable compared to the same period.
On the following day, after the leading Taiwanese PVC producer announced the price list for July shipment, the leading Indian petrochemical producer revised their local offers by INR3,000/ton ($40/ton) higher with effect from June 11. The adjustment is actually already on traders’ radar as market talks have it that the producer already sold 80% of their allocation to local and export markets. Hence, traders assumed that the producer is likely having no sales pressure at the moment. Speaking of imports, SSESSMENTS.COM heard about the rumour circulating in the market that the leading Taiwanese PVC producer already sold as much as 80% of the total allocation for July shipment so far.
Demand-wise, Indian market players commented to SSESSMENTS.COM that domestic PVC demand is quite strong lately as supported by good sales for finished products. As reported, demand for PVC compounds as well as PVC end-products related to the agricultural and pipe sector is going good this week. At this point, most players believe that demand will remain healthy in the days to come. However, after the rain kicked-in several cities in India, which is a sign that this year’s monsoon is coming on time, players began to question the sustainability of the current state of demand. As early as mid-June, some parts of the India market will be affected by the rain. Therefore, the overall demand may not be steadfastly strong throughout June, some players voiced out.
