India PVC Market Showed Distinct Demand And Price Trend Across Districts
- Localized ethylene-based PVC offers of several origins moved to different directions
- Converters running at reduced rate due to labor shortage
- Outlook for local PVC prices moved into two directions
Within the week commencing July 27, SSESSMENTS.COM noted that demand and price trends in the India PVC market showed a distinct movement across districts. An Indian ethylene-based PVC producer increased the offers between INR1,000-1,500/ton ($13-20/ton) on the back of limited supply on the producer’s end. While for localized cargoes, the offers captured moved to different directions, depending on the district. In Delhi, buoyed by the limited availability, localized ethylene-based PVC offers of Japan and Mexico origin increased by INR1,000/ton ($13/ton). For South Korean cargoes, the offers have gone up by INR1,500/ton ($20/ton) and between INR1,000-1,500/ton ($13-20/ton) for Russian cargoes. In contrast, offers for localized ethylene-based PVC of Taiwan origin have decreased between INR1,000-2,000/ton ($13-27/ton) in Mundra as buyers showed limited interest in procurement activities. While in Mumbai, a trader maintained the offers for localized Taiwanese ethylene-based PVC cargoes stable, available between INR75,500-76,000/ton ($1,011-1,018/ton) on cash, EXW basis and excluding 18% GST. In the import market, import ethylene-based PVC offers of Japan origin have increased between $10-20/ton. For the Southeast Asian cargoes, offers for Vietnamese ethylene-based PVC cargoes are available at $895/ton on LC at sight, CIF India main port basis, with some rooms for negotiation provided by the producer. All price changes in this paragraph are on the week-on-week comparison.
Different states of demand for PVC resins observed across districts in India. Demand reported ongoing in Delhi and Mumbai. In Delhi, demand was reported healthy as buyers were willing to secure some materials on the back of tight supply. However, after the producer increased the offers, buyers showed resistance towards the high prices. While in Mundra, the monsoon season has hampered demand for PVC resins. On the supply front, SSESSMENTS.COM noted that most converters in the country are running between 50-70% from the maximum capacity due to labor shortage.
Looking ahead, some Indian market players predicted that local ethylene-based PVC prices have some rooms for a downward price adjustment of between INR500-1,000/ton ($7-13/ton) on the back of high intensity of rains, labor shortage, and the arrival of import materials purchased at low prices. While some others opined that as the leading Taiwanese PVC producer is expected to increase the offers to $900/ton-level for September shipment, the leading PVC producer in the country will increase the local offers between INR1,000-1,500/ton ($13-20/ton), SSESSMENTS.COM was told.
