- Import offers were hovering near new lows of $800/ton-level
- Demand stayed on a downward trajectory
- Most sources voiced out negative outlook for Q2
SSESSMENTS.COM’s data showed that India saw an overall hike in the local and import PVC market at the beginning of the first quarter of 2020. In the first week of January, some local traders initiated a price increase of INR1,500-2,000/ton ($20-26/ton) for ethylene-based PVC cargoes on a weekly comparison following an increase of INR1,000/ton ($13/ton) from the leading Indian PVC producer a week earlier. Within a week, the producer applied another increase on local offers by INR1,500/ton ($20/ton). Some traders follow-suit, while some others kept local prices firm until the end of January. Moving to the third week, one of the local producers applied a discount scheme of maximum INR1,300/ton ($17/ton) until the end of January following the leading Indian PVC producer’s pricing strategy. From the import market, the leading Taiwanese PVC producer made a decision to adjust up January shipment offers to the India market by $10/ton from January, with a discount of $10/ton was applicable for purchasing at 500 tons and above.
In February, SSESSMENTS.COM was informed that local and localized offers for ethylene-based PVC cargoes in India showed different trends each week. In the first week of the month, the leading Indian PVC producer initiated a price increase of INR1,000/ton ($13/ton) and withdrew the discount scheme for January with effect from February 1. For February, a discount of between INR500-750/ton ($6-10/ton) was applicable for purchases of 8.33% above the annual procurement plan quantity. Moving to the second week, most traders adjusted down local offers between INR500-1,000/ton ($6-13/ton) from a week earlier in a bid to boost sales. In the following week, a local producer decided to apply another discount of INR1,000/ton ($13/ton) in line with the leading Indian PVC producer’s pricing strategy. In the final week, local ethylene-based PVC offers in the spot market edged down by INR500/ton ($6/ton) from a week earlier, while localized cargoes of various origins remained stable as compared to the same period. From the import market, the leading Taiwanese PVC producer announced February shipment offers to the market with an increase of $20/ton from January, a discount of $10/ton was applicable for purchasing at 500 tons and above.
In March, local and localized offers for ethylene-based PVC cargoes in India showed different trends each week. In the first week of March, the leading Indian PVC producer announced local offers with a rollover and the early-bird discount of INR500/ton ($6/ton) was given. For localized cargoes, offers for Taiwanese origin cargoes edged higher by INR1,000/ton ($13/ton) from a week earlier. In the following week, most traders halted on releasing fresh offers, while some maintained stable offers for localized cargoes as oil prices plunged to multi-year lows following the escalation in tensions between Russia and Saudi Arabia, which led to rising uncertainty in the market. Moving to the third week, the leading Indian PVC producer declared a price protection, which sparked a downward adjustment of between INR500-1,000/ton ($6-13/ton) on localized PVC offers via traders from a week earlier. On March 18, the producer withdrew the price protection and slashed local offers by INR2,500/ton ($33/ton) from a week earlier. In the final week of the month, the number of fresh offers was limited as the country has been under lockdown since March 24. From the import market, the leading Taiwanese PVC producer announced March shipment offers to the market with an increase of $10/ton from a month earlier, a discount of $10/ton was applicable for purchasing at 500 tons and above.
In general, demand for PVC in the India market exhibited a mixed performance during the first quarter of 2020. Throughout January, overall demand in India remained healthy as the number of inquiries and transactions had slightly increased, supported by the leading Indian PVC producer’s pricing strategy. However, some traders claimed that prolonged winter season in the Northern part of the country and sufficient inventory on end-buyers’ end kept a lid on demand. In February, most sources in India revealed that the market showed signs of slowing, citing the liquidity issues that have kept the financial sector on its heels, slow sales for end products, sufficient inventory on hand, the expectation for lower prices, and delayed seasonal demand have led to a significant decline in demand. In the final week of the month, most market players started to leave their desks for the Holi Festival from March 9 to March 10.
In March, Saudi-Russia’s oil price war, weakening Rupee and Coronavirus fears, took a toll on the economy, pushing the PVC market into a slowdown. As of March 9, Indian rupee touched a 17-month low against the greenback following a global financial market meltdown signalled that the world was staring at a coronavirus-led economic recession. As the number of coronavirus infections continued to rise, the Indian government imposed a nationwide lockdown from March 24 until April 14 in a bid to combat the spread of Coronavirus. Following the 21-day nationwide lockdown, several Indian producers have been forced to shut down their plants, such as Finolex Industries, DCW Ltd., DCM Shriram. On March 30, India’s Chemplast Sanmar declared a force majeure on PVC supply due to nationwide lockdown. The producer shut down the EDC, Chlorine, Caustic Soda plants, as well as its 300,000 tons/year PVC plant until further notice.
Entering the second quarter, the majority of Indian market players expressed concern over the ability of the PVC market to recover. Some sources believe that the demand for PVC will be affected by the upcoming monsoon in June before the market is fully recovered from the Coronavirus impacts. While others foresee that import offers will hover near new lows of $600/ton-level considering current feedstock prices and bearish sentiment.
Range of local/localized ethylene-based PVC transactions in January on cash/credit term, EXW/FD basis (excluding 18% GST in all terms)
| Origin | Transaction Type | Offers (INR/ton) | Equivalent in USD/ton | Delivery Term | Delivery Location |
|---|
| Egypt | Offer Given | 72,000 | 945 | EXW | Delhi |
| India | Offer Given | 74,000-75,500 | 971-991 | EXW | Cuddalore |
| India | Sold | 75,500 | 991 | EXW | Cuddalore |
| India | Offer Given | 74,500-74,700 | 978-980 | EXW | Delhi |
| India | Offer Given | 71,000-75,000 | 932-984 | EXW | Mumbai |
| India | Offer Received | 75,300 | 988 | FD | Raniganj |
| Japan | Offer Given | 73,000 | 958 | EXW | Mumbai |
| Japan | Offer Received | 70,500 | 925 | EXW | Mumbai |
| Russia | Offer Given | 72,000-73,500 | 945-965 | EXW | Delhi |
| Russia | Sold | 73,000 | 958 | EXW | Delhi |
| Russia | Offer Given | 72,000-72,500 | 945-951 | EXW | Gujarat |
| Russia | Offer Received | 71,500-72,000 | 938-945 | EXW | Gujarat |
| Russia | Offer Given | 71,000-71,500 | 932-938 | EXW | Mumbai |
| Russia | Offer Received | 69,500 | 912 | EXW | Mumbai |
| Russia | Purchased | 70,000* | 919 | EXW | Mumbai |
| Saudi | Offer Given | 72,500 | 951 | EXW | Mumbai |
| Saudi | Sell Idea | 72,000-72,500 | 945-951 | EXW | Mumbai |
| South Korea | Offer Given | 73,000-74,000 | 958-971 | EXW | Delhi |
| South Korea | Sell Idea | 75,000-76,000 | 984-997 | EXW | Delhi |
| South Korea | Sold | 74,000 | 971 | EXW | Delhi |
| South Korea | Offer Given | 72,000-73,000 | 945-958 | EXW | Gujarat |
| South Korea | Sold | 72,500-73,000 | 951-958 | EXW | Gujarat |
| South Korea | Offer Given | 72,000 | 945 | EXW | Mumbai |
| South Korea | Offer Received | 71,250 | 935 | EXW | Mumbai |
| Taiwan | Offer Given | 73,000-75,000 | 958-984 | EXW | Delhi |
| Taiwan | Offer Given | 72,500-73,500 | 951-965 | EXW | Gujarat |
| Taiwan | Offer Given | 71,000-73,000 | 932-958 | EXW | Mumbai |
| Taiwan | Offer Received | 72,000 | 945 | EXW | Mumbai |
| Taiwan | Purchased | 72,000 | 945 | EXW | Mumbai |
| Thailand | Offer Given | 73,000-74,000 | 958-971 | EXW | Delhi |
| Ukraine | Offer Given | 71,000-72,500 | 932-951 | EXW | Gujarat |
| Ukraine | Offer Given | 71,000-71,500 | 932-938 | EXW | Mumbai |
| Ukraine | Offer Received | 69,500 | 912 | EXW | Mumbai |
| Ukraine | Purchased | 69,500-71,000 | 912-932 | EXW | Mumbai |
| Ukraine | Sell Idea | 72,000-72,500 | 945-951 | EXW | Mumbai |
Description: *Offers on 30 days credit term
Range of import PVC transactions in January, CIF India Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Payment Term |
|---|
| China | Acetylene-based | Offer Received | 900 | LC at sight |
| Central Asia | Ethylene-based | Offer Received | 860-880 | LC 90 days |
| Central Asia | Ethylene-based | Purchased | 870 | LC 90 days |
| Central Asia | Ethylene-based | Bid Given | 865 | LC at sight |
| Central Asia | Ethylene-based | Offer Received | 865 | LC at sight |
| Europe | Ethylene-based | Offer Received | 880 | LC 90 days |
| Europe | Ethylene-based | Offer Received | 870-900 | LC at sight |
| Far East Asia | Ethylene-based | Buy Idea | 880-890 | LC 90 days |
| Far East Asia | Ethylene-based | Offer Given | 890-900 | LC 90 days |
| Far East Asia | Ethylene-based | Offer Received | 900-980 | LC 90 days |
| Far East Asia | Ethylene-based | Buy Idea | 870-900 | LC at sight |
| Far East Asia | Ethylene-based | Offer Given | 890-950 | LC at sight |
| Far East Asia | Ethylene-based | Offer Received | 880-930 | LC at sight |
| Far East Asia | Ethylene-based | Price List | 880-910 | LC at sight |
| Far East Asia | Ethylene-based | Purchased | 880-910 | LC at sight |
| Far East Asia | Ethylene-based | Sell Idea | 885-940 | LC at sight |
| Far East Asia | Ethylene-based | Sold | 880-940 | LC at sight |
| Middle East | Ethylene-based | Offer Received | 820-840 | LC at sight |
| South America | Ethylene-based | Offer Given | 880 | LC 90 days |
| South America | Ethylene-based | Sold | 880 | LC 90 days |
| South America | Ethylene-based | Offer Received | 830 | LC at sight |
| Southeast Asia | Ethylene-based | Offer Received | 925 | LC 90 days |
| Southeast Asia | Ethylene-based | Offer Given | 915 | LC at sight |
| Southeast Asia | Ethylene-based | Offer Received | 915-925 | LC at sight |
| Southeast Asia | Ethylene-based | Sold | 915 | LC at sight |
Range of local/localized ethylene-based PVC transactions in February on cash/credit term, EXW India basis (excluding 18% GST in all terms)
| Origin | Transaction Type | Currency | Offers/ton | Equivalent in USD/ton | Delivery Location |
|---|
| India | Offer Given | INR | 76,500 | 1,004 | Cuddalore |
| India | Offer Given | INR | 72,000-74,000 | 945-971 | Delhi |
| India | Offer Given | INR | 72,000-76,000 | 945-997 | Mumbai |
| India | Offer Received | USD | 860 | - | Mumbai |
| India | Offer Received | INR | 73,000 | 958 | Mumbai |
| Iran | Offer Given | INR | 72,500 | 951 | Delhi |
| Japan | Offer Given | INR | 71,000 | 932 | Mumbai |
| Russia | Offer Given | INR | 71,000 | 932 | Bhiwandi |
| Russia | Offer Given | INR | 72,500-75,000 | 951-984 | Delhi |
| Russia | Offer Given | INR | 71,500-72,000 | 938-945 | Gujarat |
| Russia | Offer Given | INR | 71,000 | 932 | Mumbai |
| Russia | Purchased | INR | 71,000-71,500 | 932-938 | Mumbai |
| South Korea | Offer Given | INR | 73,000-76,000 | 958-997 | Delhi |
| South Korea | Offer Given | INR | 72,500-73,000 | 951-958 | Gujarat |
| South Korea | Offer Given | INR | 72,000-72,500 | 945-951 | Mumbai |
| South Korea | Sell Idea | INR | 72,500 | 951 | Mumbai |
| Taiwan | Offer Given | INR | 73,250-73,750 | 961-968 | Bhiwandi |
| Taiwan | Offer Given | INR | 74,000-76,000 | 971-997 | Delhi |
| Taiwan | Sold | INR | 73,500 | 965 | Delhi |
| Taiwan | Offer Given | INR | 71,000-73,500 | 932-965 | Mumbai |
| Taiwan | Offer Given | INR | 72,000*-72,500* | 945-951 | Mumbai |
| Taiwan | Sold | INR | 72,000-73,500 | 945-965 | Mumbai |
| Thailand | Offer Given | INR | 74,500-75,000 | 978-984 | Delhi |
| Thailand | Offer Given | INR | 71,000 | 932 | Mumbai |
| Ukraine | Offer Given | INR | 73,000 | 958 | Delhi |
Description: *Offers on 60 days credit term
Range of import PVC transaction in February, CIF India Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Payment Term |
|---|
| China | Acetylene-based | Offer Received | 800-830 | LC at sight |
| China | Acetylene-based | Purchased | 820 | LC at sight |
| Central Asia | Ethylene-based | Offer Received | 870-890 | LC at sight |
| Central Asia | Ethylene-based | Purchased | 880 | LC at sight |
| China | Ethylene-based | Offer Received | 810 | LC at sight |
| Europe | Ethylene-based | Offer Received | 875 | LC 90 days |
| Europe | Ethylene-based | Buy Idea | 840 | LC at sight |
| Europe | Ethylene-based | Offer Given | 890 | LC at sight |
| Europe | Ethylene-based | Offer Received | 870-900 | LC at sight |
| Far East Asia | Ethylene-based | Offer Given | 890 | LC 90 days |
| Far East Asia | Ethylene-based | Offer Received | 910-960 | LC 90 days |
| Far East Asia | Ethylene-based | Bid Given | 870 | LC at sight |
| Far East Asia | Ethylene-based | Bid Received | 970-980 | LC at sight |
| Far East Asia | Ethylene-based | Buy Idea | 870-920 | LC at sight |
| Far East Asia | Ethylene-based | Offer Given | 900-980 | LC at sight |
| Far East Asia | Ethylene-based | Offer Received | 900-980 | LC at sight |
| Far East Asia | Ethylene-based | Price List | 910-930 | LC at sight |
| Far East Asia | Ethylene-based | Purchased | 890-910 | LC at sight |
| Far East Asia | Ethylene-based | Sell Idea | 890-910 | LC at sight |
| Far East Asia | Ethylene-based | Sold | 900-980 | LC at sight |
| Middle East | Ethylene-based | Offer Received | 860 | LC at sight |
| North America | Ethylene-based | Offer Received | 850-860 | LC at sight |
| Southeast Asia | Ethylene-based | Offer Received | 944-950 | LC 90 days |
| Southeast Asia | Ethylene-based | Offer Given | 940 | LC at sight |
| Southeast Asia | Ethylene-based | Offer Received | 940-970 | LC at sight |
| Southeast Asia | Ethylene-based | Purchased | 940 | LC at sight |
| Southeast Asia | Ethylene-based | Sold | 940 | LC at sight |
| South America | Ethylene-based | Buy Idea | 840 | LC at sight |
| South America | Ethylene-based | Offer Received | 860-880 | LC at sight |
| South America | Ethylene-based | Price List | 930 | LC at sight |
Range of local/localized ethylene-based PVC transactions in March on cash, EXW India basis (excluding 18% GST in all terms)
| Origin | Transaction Type | Offers (INR/ton) | Equivalent in USD/ton | Delivery Country |
|---|
| Egypt | Offer Given | 72,500-73,500 | 951-965 | Delhi |
| India | Purchased | 72,500 | 951 | Chennai |
| India | Offer Given | 76,500 | 1,004 | Cuddalore |
| India | Offer Given | 73,500-76,000 | 965-997 | Mumbai |
| India | Offer Received | 76,000 | 997 | Mumbai |
| India | Purchased | 71,500 | 938 | Mumbai |
| Japan | Offer Given | 74,000 | 971 | Delhi |
| Japan | Offer Received | 75,000-76,500 | 984-1,004 | Kolkata |
| Japan | Purchased | 74,500 | 978 | Kolkata |
| Russia | Sell Idea | 71,000 | 932 | Bhiwandi |
| Russia | Offer Given | 70,000-70,500 | 919-925 | Mumbai |
| Singapore | Offer Given | 73,000-74,000 | 958-971 | Delhi |
| South Korea | Offer Given | 73,000-76,000 | 958-997 | Delhi |
| South Korea | Offer Given | 72,500-73,000 | 951-958 | Gujarat |
| South Korea | Offer Received | 73,000 | 958 | Mumbai |
| Taiwan | Sell Idea | 73,250-73,750 | 961-968 | Bhiwandi |
| Taiwan | Offer Given | 73,000-76,000 | 958-997 | Delhi |
| Taiwan | Offer Received | 75,500-76,500 | 991-1,004 | Kolkata |
| Taiwan | Offer Given | 73,500-74,000 | 965-971 | Mumbai |
| Taiwan | Offer Received | 71,000-73,000 | 932-958 | Mumbai |
| Taiwan | Purchased | 70,500-71,000 | 925-932 | Mumbai |
| Thailand | Offer Given | 74,500-76,000 | 978-997 | Delhi |
| Ukraine | Offer Given | 73,000-75,000 | 958-984 | Delhi |
Range of import PVC transactions in March, CIF India Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Payment Term |
|---|
| China | Acetylene-based | Offer Received | 780-820 | LC at sight |
| Ukraine | Ethylene-based | Bid Given | 870 | LC at sight |
| Japan | Ethylene-based | Offer Given | 900-910 | LC 90 days |
| Japan | Ethylene-based | Offer Given | 970-980 | LC at sight |
| Taiwan | Ethylene-based | Offer Given | 850-860 | LC at sight |
| Russia | Ethylene-based | Offer Received | 871 | LC at sight |
| Ukraine | Ethylene-based | Offer Received | 835 | LC 90 days |
| Ukraine | Ethylene-based | Offer Received | 890 | LC at sight |
| Japan | Ethylene-based | Offer Received | 900-980 | LC at sight |
| South Korea | Ethylene-based | Offer Received | 835-850 | LC at sight |
| South Korea | Ethylene-based | Offer Received | 845-850 | LC 90 days |
| Singapore | Ethylene-based | Offer Received | 860 | LC at sight |
| Thailand | Ethylene-based | Offer Received | 865 | LC 90 days |
| Taiwan | Ethylene-based | Offer Received | 835 | TT |
| Taiwan | Ethylene-based | Offer Received | 840-850 | LC at sight |
| Taiwan | Ethylene-based | Offer Received | 860 | LC 90 days |
| Taiwan | Ethylene-based | Price List | 835-860 | LC at sight |
| Japan | Ethylene-based | Purchased | 970 | LC at sight |
| Taiwan | Ethylene-based | Purchased | 840 | LC at sight |
| Japan | Ethylene-based | Sold | 900-910 | LC 90 days |
| Japan | Ethylene-based | Sold | 960-970 | LC at sight |
| Taiwan | Ethylene-based | Sold | 850 | LC at sight |
Tags: Asia Pacific,English,ISC,India,PVC,Quarterly
Published on April 11, 2020 10:21 PM (GMT+8)
Last Updated on April 11, 2020 11:04 PM (GMT+8)
