Indian PVC Market Players Foretell Continuation Of Price Adjustment Considering Current Market Situation
- Import offers reported scarce
- Demand from a certain sector reported strong
- Players foresee a further price adjustment before monsoon season starts to kick-in
Considering the current market situation, Indian market players foresee that local ethylene-based PVC offers have room to increase further, SSESSMENTS.COM was told. Last week, Indian PVC producers increased the offers by INR2,000/ton ($26/ton) on May 18. On May 21, a further price increase by the same amount was captured from the producers’ end. At the moment, the offers for local ethylene-based PVC stand at INR66,500/ton ($880/ton) on cash, EXW Mumbai basis, and excluding 18% GST. Meanwhile, market talks have it that localized ethylene-based PVC cargoes of Taiwan origin in the open market are available between INR69,000-70,000/ton ($913-927/ton) with the same payment and delivery term. As such, local offers still have a room for further upward price adjustment of between INR2,000-3,000/ton ($26-40/ton). In the import market, no new offers available at the moment. A Taiwanese PVC producer has no offers as the producer has sold out all the allocation last week. Meanwhile, another Taiwanese PVC producer has not announced the offers for June shipment due to supply shortage.
Demand for PVC resin in the India market is improving, especially from the agriculture sector. After more than a month of lockdown, converters are running out of inventory and need to restock some materials. However, the supply is slightly limited as producers reduce the production rate due to workforce constraint amid measures to curb the spread of the Coronavirus. Besides, disruption in the delivery of materials is extant as some states are still under lockdowns, as noted by SSESSMENTS.COM.
Looking ahead, Indian PVC market players believe that the uptrend in PVC prices and demand will sustain until the monsoon season starts to kick-in in the country. As told to SSESSMENTS.COM, the monsoon season in India will start in July.
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