monthlyssessments-june-india-pvc-prices

In June 2020, PVC price trend in India shifted at the end of the month. On the week commencing June 1, offers from the leading Indian PVC producer were available at INR68,500/ton ($919/ton) on cash, EXW basis. The producer claimed that this level was lower by INR3,000-4,000/ton ($39-53/ton) as compared to the offers in the open market. According to a local trader in the country, since the end of May, PVC prices across India were up by INR2,000/ton ($26/ton). As such, on the week starting June 8, the leading Indian PVC producer eventually increased the offers by INR2,000/ton ($26/ton) as compared to a week earlier. On the week June starting 15, PVC prices in India started to retreat. Some traders lowered offers for local PVC cargoes between INR1,000-3,000/ton ($13-39/ton) from a week earlier. In the following week, further reduction of INR1,500-2,500/ton ($19-32/ton) was captured from the traders’ end. At the end of the month, deals for the leading India PVC producer’s cargoes were achieved at the initial offer level, at INR73,000/ton ($979/ton) on cash, FD basis. For localized cargoes, Taiwanese ethylene-based PVC offers showed a reduction of INR1,000/ton ($13/ton) as compared to a week earlier, available between INR72,000-73,000/ton ($966-979/ton) on cash, EXW Nhava Sheva basis. All offers excluding 18% GST. SSESSMENTS.COM was told that the downtrend at the end of the month was attributed to softer demand, coupled with the appreciation of local currency towards the U.S Dollar.

In the import market, offers for July shipment emerged with increases of between $100-140/ton as compared to the offers for June shipment. PVC cargoes from the leading Taiwanese PVC producer for July shipment increased by $100/ton on a monthly comparison, available at $840/ton on LC at sight, CIF India main port basis. Before the Taiwanese producer announced the fresh offers for July shipment, on the week commencing June 8, offers for Japanese ethylene-based PVC cargoes were already available in the market at $830/ton. Market sources told SSESSMENTS.COM that the producer did not have much allocation. On June 15, the deals for South Korean cargoes captured lower by $20/ton from the initial offer level, at $820/ton. As of June 30, early August shipment offers from a Japanese PVC producer surfaced with a downward price correction of between $20-30/ton compared to the offers for July shipment.

As the Indian government eased the lockdown measures, customers found the confidence to build their inventory at the beginning of the month despite demand has yet back to normal. On the week commencing June 1, the consumption rate of PVC cargoes reached 60-70% from the normal volume. In the second week of the month, demand reported healthy, mostly supported by the agricultural and medical sector. Local PVC producers told SSESSMENTS.COM that their cargoes were already fully booked for June delivery. From the pipe sector, the producers already ran at the full capacity in the second week of June. However, demand from the construction sector was not as strong as from the agriculture sector due to labor shortage. Extended lockdown around Mumbai and Gujarat caused a shortage of workforce and also led to logistic disruption. Within the week commencing June 22, Chennai Port reported close due to the extended lockdown. As such, buyers from that area have to send the cargoes to Nhava Sheva Port and later distributed via land transportation. Fortunately, cargoes that previously held at Chennai Port can be moved immediately upon returning workers to load/unload materials following lockdown relaxation starting from June 30.

Looking into July, India market players expect that import PVC offers for August shipment will be stable or lower between $10-30/ton as compared to July shipment. The slow demand on the back of the monsoon season is predicted to drag import and local PVC prices. The slow PVC market predicted to last until August and will begin to improve in September once the rainy season is over, as stated to SSESSMENTS.COM.

Range of local/localized ethylene-based PVC offers between June 1 to June 5 on cash, EXW basis (excluding 18% GST in all terms)

Origin	Transaction Type	Offers (INR/ton)	Equivalent in USD/ton	Delivery Location
South Korea	Offer Given	74,000	993	Chennai
India	Offer Given	69,000	926	Cuddalore
India	Sold	69,000	926	Cuddalore
Russia	Offer Given	74,000-75,000	993-1,006	Delhi
South Korea	Offer Given	75,500-76,000	1,013-1,020	Delhi
Taiwan	Offer Given	76,000	1,020	Delhi
India	Offer Given	68,500	919	Mumbai
India	Purchased	70,150	941	Mumbai
Japan	Purchased	70,000	939	Mumbai
Russia	Offer Given	72,000	966	Mumbai
South Korea	Offer Given	72,000-73,000	966-979	Mumbai
South Korea	Sold	72,000-72,500	966-973	Mumbai
Taiwan	Offer Given	72,000-73,000	966-979	Mumbai
Taiwan	Sold	72,000-72,500	966-973	Mumbai
Ukraine	Offer Given	72,000	966	Mumbai

Range of import ethylene-based PVC offers between June 1 to June 5 on LC at sight, CIF India Main Port basis

Origin	Transaction Type	Offers (USD/ton)
Germany	Offer Given	780*
Germany	Offer Received	780
Indonesia	Offer Received	780
Japan	Offer Given	800
Japan	Offer Received	830
Japan	Sold	800
Saudi	Price List	820
Taiwan	Offer Given	830
Taiwan	Offer Received	830
Taiwan	Price List	830
Taiwan	Sold	820
USA	Offer Given	780*

Description: *Offers on LC 90 Days

Range of local/localized ethylene-based PVC offers between June 8 to June 12 on cash, EXW/FD basis (excluding 18% GST in all terms)

Origin	Transaction Type	Offers (INR/ton)	Equivalent in USD/ton	Payment Term	Delivery Location
India	Purchased	70,500	946	FD	Bengaluru
India	Offer Given	71,000	953	EXW	Cuddalore
India	Offer Given	75,000	1,006	EXW	Delhi
India	Offer Given	70,500-73,500	946-986	EXW	Mumbai
India	Purchased	69,500	933	EXW	Mumbai
India	Sold	70,500	946	EXW	Mumbai
Russia	Offer Given	72,000	966	EXW	Ahmedabad
South Korea	Offer Given	73,000	979	EXW	Ahmedabad
South Korea	Offer Received	72,000-73,000	966-979	EXW	Mumbai
Taiwan	Offer Given	73,000	979	EXW	Ahmedabad
Taiwan	Offer Given	74,000	993	EXW	Delhi
Taiwan	Offer Given	72,000-75,000	966-1,006	EXW	Mumbai

Range of import ethylene-based PVC offers between June 8 to June 12, CIF India Main Port basis

Origin	Transaction Type	Offers (USD/ton)	Payment Term
Germany	Offer Received	820	LC 90 Days
Germany	Offer Given	820	LC 90 Days
Japan	Offer Received	830	LC 90 Days
Japan	Sell Idea	850-890	LC At Sight
Japan	Offer Received	820-830	LC At Sight
Saudi	Sold	790-800	LC At Sight
South Korea	Price List	850	LC At Sight
South Korea	Offer Given	850-860	LC 90 Days
South Korea	Price List	845	LC 60 days
South Korea	Price List	840	LC 90 Days
South Korea	Offer Received	820-850	LC At Sight
Taiwan	Offer Received	830-840	LC At Sight
Taiwan	Offer Given	840	LC At Sight

Range of local/localized ethylene-based PVC offers between June 15 to June 19 on cash, EXW/FD basis (excluding 18% GST in all terms)

Origin	Transaction Type	Offers (INR/ton)	Equivalent in USD/ton	Delivery Term	Delivery Location
India	Purchased	73,000	979	FD	Bengaluru
India	Offer Given	71,200-73,500	955-986	EXW	Mumbai
India	Purchased	72,000	966	EXW	Mumbai
Japan	Offer Given	72,000	966	EXW	Delhi
Japan	Purchased	76,000	1,020	EXW	Kolkata
Japan	Purchased	72,500	973	EXW	Mumbai
Russia	Offer Given	72,500	973	EXW	Delhi
Russia	Offer Given	71,000-72,000	953-966	EXW	Mumbai
South Korea	Offer Given	71,500-72,000	959-966	EXW	Ahmedabad
South Korea	Offer Given	74,000	993	EXW	Delhi
South Korea	Offer Given	73,000-74,000	979-993	EXW	Mumbai
Taiwan	Offer Given	71,500-72,000	959-966	EXW	Ahmedabad
Taiwan	Offer Given	74,000	993	EXW	Delhi
Taiwan	Offer Given	71,500-74,000	959-993	EXW	Mumbai
Taiwan	Offer Given	73,000-74,000	979-993	EXW	Nhava Sheva
Ukraine	Offer Received	75,000	1,006	EXW	Chennai
Ukraine	Offer Given	71,000-72,000	953-966	EXW	Mumbai
USA	Offer Received	72,000-73,000	966-979	EXW	Mumbai

Range of import ethylene-based PVC offers between June 15 to June 19 on LC at sight, CIF India Main Port basis

Origin	Transaction Type	Offers (USD/ton)
Japan	Bid Given	870
Japan	Offer Given	880-900
Japan	Offer Received	880
Japan	Sold	880-900
Saudi	Buy Idea	785-790
South Korea	Offer Received	840-845
South Korea	Sell Idea	830
South Korea	Purchased	820
Taiwan	Offer Given	840
Taiwan	Offer Received	840
Taiwan	Purchased	830-840
Thailand	Offer Received	860-880
USA	Offer Received	760

Range of local/localized ethylene-based PVC offers between June 22 to June 26 on cash, EXW basis (excluding 18% GST in all terms)

Origin	Transaction Type	Offers (INR/ton)	Equivalent in USD/ton	Delivery Location
India	Offer Given	73,500	986	Mumbai
Russia	Offer Given	71,000	953	Delhi
Russia	Purchased	70,500	946	Mumbai
Russia	Offer Given	69,000-70,500	926-946	Mumbai
South Korea	Offer Given	70,000-71,000*	939-953	Ahmedabad
South Korea	Offer Given	71,500	959	Delhi
South Korea	Offer Given	71,000-72,500	953-973	Mumbai
Taiwan	Offer Given	70,000-71,000*	939-953	Ahmedabad
Taiwan	Offer Given	71,000-72,000	953-966	Mumbai
Taiwan	Offer Given	73,000-74,000	979-993	Nhava Sheva
Thailand	Purchased	70,500	946	Mumbai

Description: *Offers in 30 Days Credit Terms

Range of import ethylene-based PVC offers between June 22 to June 26 on LC at sight, CIF India Main Port basis

Origin	Transaction Type	Offers (USD/ton)
Europe	Offer Received	850*
Europe	Price List	850*
Far East Asia	Offer Received	1,070
Far East Asia	Price List	840
Far East Asia	Offer Given	840
North America	Offer Given	780-800
North America	Purchased	720
South Africa	Offer Received	810*
South America	Purchased	770
South America	Offer Received	805*

Description: *Offers on LC 90 days

Range of local/localized ethylene-based PVC offers between June 29 to June 30 on cash, EXW/FD basis (excluding 18% GST in all terms)

Origin	Transaction Type	Offers (INR/ton)	Equivalent in USD/ton	Delivery Term	Delivery Location
India	Offer Received	72,000	966	EXW	Mumbai
India	Purchased	73,000	979	FD	Bengaluru
Japan	Offer Given	71,000	953	EXW	Delhi
Mexico	Offer Given	69,000	926	EXW	Mumbai
Russia	Offer Given	70,500	946	EXW	Mumbai
Russia	Offer Given	71,000	953	EXW	Delhi
South Korea	Offer Given	71,000-72,500	953-973	EXW	Mumbai
Taiwan	Offer Given	71,000	953	EXW	Delhi
Taiwan	Offer Given	70,000-71,000	939-953	EXW	Mumbai
Taiwan	Offer Given	72,000-73,000	966-979	EXW	Nhava Sheva
Thailand	Offer Received	70,000	939	EXW	Mumbai
Thailand	Offer Given	71,000	953	EXW	Mumbai

Range of import ethylene-based PVC offers between June 29 to June 30, CIF India Main Port basis

Origin	Transaction Type	Offers (USD/ton)	Payment Term
Europe	Offer Received	770	LC at sight
Far East Asia	Offer Received	850-860	LC at sight
North America	Offer Received	780-800	LC 90 days
North America	Offer Received	800*	LC at sight

Description: *July shipment offers

MonthlySSESSMENTS: June India PVC Prices

Author: SSESSMENTS

MonthlySSESSMENTS: June India PVC Prices

Author: SSESSMENTS

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