Local offers for ethylene-based PVC on cash, EXW Delhi basis (excluding 18% GST)
PVC demand in India has recovered slowly as factories resume operation following zoning policy from the government amid Coronavirus outbreak. An Indian producer informed SSESSMENTS.COM that states in India divided into three zones depending on the number of Coronavirus cases; red, orange and green. Delhi is in the red zone and the activity restriction still strong. It also hard for converters in the red zone to get approval to restart production. While for other zones, there will be a strict policy for factories to start operation again, as to prepare complete sanitary facility, pick up their employees since the employees cannot use public transportation, the maximum capacity is 50% and only one-third of the total employees are allowed to work at the office and factories and many other terms to fulfil. Production activities in Delhi still remain the same as last week, as most converters have yet to resume operation, but buying improvement is reportedly improving.
As for supply, the availability of materials in India is limited since there are no new import cargoes come during the lockdown period. The materials from local producers will be absorbed faster and since market players believe that PVC offers for June shipment will be higher, converters keep stocking up even though there is no production activity in their factories. The local PVC price is also going up by INR1,000/ton ($13/ton) compared to last week. The producer also disclosed to SSESSMENTS.COM that the company plans to restart production by the end of this week, with rate keeps at 50% from normal, to comply with the government policy.
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Tags: Asia Pacific,English,India,News,PVC
Published on May 12, 2020 1:44 PM (GMT+8)Last Updated on May 12, 2020 1:44 PM (GMT+8)
