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WeeklySSESSMENTS: India PVC Prices Week Starting June 15


India PVC Market In Status Quo Ahead Of Monsoon Season With Country Still Dealing With Coronavirus 

  • A local producer kept prices in the sweet spot to achieve deals
  • Overall demand is stable amid coronavirus pandemic and early monsoon
  • Pricing outlook clouded by the monsoon season

No significant changes in the India PVC market observed during the week as the country is still occupied with handling coronavirus, while at the same time, early monsoon affects market players' behavior. A producer revealed that their offers were kept stable from last week, at INR71,200/ton ($939/ton) after discount. As such, there is good acceptance from customers at this current level after ruckus last week. On the traders’ side, offers for local and localized PVC cargoes reported drop between INR1,000-3,000/ton ($13-39/ton) from last week. Market players opined that offering PVC cargoes above INR73,000/ton ($963/ton)-level will receive stiff resistance from buyers. From the import market, market participants informed that for July shipment, there was an increase in offers in the range of $100-140/ton as compared to June shipment, however, most customers already purchased in big quantities last month, so now they reduce the buying quantity or skip the procurements. PVC cargoes from Japan and Thailand stand at $880-900/ton and $860-880/ton respectively, with traders reporting that customers show their resistance towards high prices. Meanwhile, South Korean cargo is officially available at $840/ton, but one of the traders reported that their company had achieved deals for South Korean cargoes at $820/ton for July shipment. All import offers on LC at sight, CIF India Main Port basis.

Demand remains stable supported by the agricultural and medical sectors. Some traders quoted that the shortage of labor is hindering the construction works, therefore demand from the mentioned sector has not picked up yet. In the production sector, the leading Indian PVC producer is running at 95% rate while some converters reported their production rates almost reached levels under normal conditions. From the data compiled by SSESSMENTS.COM, even though the number of new coronavirus cases is surging in India lately, especially in Chennai, Delhi, and Mumbai; but the affected areas are now being divided into mini containment zones so it does not affect manufacturing activities. Talking about supply, market players reported logistic is not running smoothly because of workforce shortages amid limited cargoes offered by local producers. The May-June shipment cargoes may help alleviate supply problems; however, the number of imported cargoes are less than usual due to the previous lockdown.

In terms of pricing outlook, market players think that the current price is already reaching its peak, so would be stabilizing or rollover from now. Monsoon is still a mysterious card for overall demand, SSESSMENTS.COM noted. Usually, end-product orders during monsoon decrease significantly, which negatively impacts demand and prices of resins. However, there is a chance for manufacturers to keep producing and building stock during the monsoon season after lockdown. Coupled with the shortage of materials in the open market, players may accept the firm prices eventually.

Local/localized ethylene-based PVC offers on cash, EXW/FD basis (excluding 18% GST in all terms)

OriginTransaction TypeOffers (INR/ton)Equivalent in USD/tonDelivery TermDelivery Location
IndiaOffer Given71,200-73,500939-963EXWMumbai
JapanOffer Given72,000949EXWDelhi
RussiaOffer Given72,500976EXWDelhi
RussiaOffer Given71,000-72,000936-949EXWMumbai
South KoreaOffer Given74,000956-976EXWDelhi
South KoreaOffer Given73,000-74,000963-976EXWMumbai
TaiwanOffer Given74,000976EXWDelhi
TaiwanOffer Given71,500-74,000943-976EXWMumbai
TaiwanOffer Given73,000-74,000963-976EXWNhava Sheva
UkraineOffer Received75,000989EXWChennai
UkraineOffer Given71,000-72,000936-949EXWMumbai
USAOffer Received72,000-73,000949-963EXWMumbai

Import ethylene-based PVC offers on LC at sight, CIF India Main Port basis

OriginTransaction TypeOffers (USD/ton)
JapanBid Given870
JapanOffer Given880-900
JapanOffer Received880
South KoreaOffer Received840-845
South KoreaSell Idea830
South KoreaPurchased820
TaiwanOffer Given840
ThailandOffer Received860-880
ThailandOffer Received865

Tags: Asia Pacific,English,Freemium,ISC,India,PVC,Weekly

Published on June 16, 2020 2:20 PM (GMT+8)
Last Updated on September 22, 2020 11:58 AM (GMT+8)