quarterlyssessments-q1-2020-india-pvc-prices

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Import offers were hovering near new lows of $800/ton-level
Demand stayed on a downward trajectory
Most sources voiced out negative outlook for Q2

SSESSMENTS.COM’s data showed that India saw an overall hike in the local and import PVC market at the beginning of the first quarter of 2020. In the first week of January, some local traders initiated a price increase of INR1,500-2,000/ton ($20-26/ton) for ethylene-based PVC cargoes on a weekly comparison following an increase of INR1,000/ton ($13/ton) from the leading Indian PVC producer a week earlier. Within a week, the producer applied another increase on local offers by INR1,500/ton ($20/ton). Some traders follow-suit, while some others kept local prices firm until the end of January. Moving to the third week, one of the local producers applied a discount scheme of maximum INR1,300/ton ($17/ton) until the end of January following the leading Indian PVC producer’s pricing strategy. From the import market, the leading Taiwanese PVC producer made a decision to adjust up January shipment offers to the India market by $10/ton from January, with a discount of $10/ton was applicable for purchasing at 500 tons and above.

In February, SSESSMENTS.COM was informed that local and localized offers for ethylene-based PVC cargoes in India showed different trends each week. In the first week of the month, the leading Indian PVC producer initiated a price increase of INR1,000/ton ($13/ton) and withdrew the discount scheme for January with effect from February 1. For February, a discount of between INR500-750/ton ($6-10/ton) was applicable for purchases of 8.33% above the annual procurement plan quantity. Moving to the second week, most traders adjusted down local offers between INR500-1,000/ton ($6-13/ton) from a week earlier in a bid to boost sales. In the following week, a local producer decided to apply another discount of INR1,000/ton ($13/ton) in line with the leading Indian PVC producer’s pricing strategy. In the final week, local ethylene-based PVC offers in the spot market edged down by INR500/ton ($6/ton) from a week earlier, while localized cargoes of various origins remained stable as compared to the same period. From the import market, the leading Taiwanese PVC producer announced February shipment offers to the market with an increase of $20/ton from January, a discount of $10/ton was applicable for purchasing at 500 tons and above.

In March, local and localized offers for ethylene-based PVC cargoes in India showed different trends each week. In the first week of March, the leading Indian PVC producer announced local offers with a rollover and the early-bird discount of INR500/ton ($6/ton) was given. For localized cargoes, offers for Taiwanese origin cargoes edged higher by INR1,000/ton ($13/ton) from a week earlier. In the following week, most traders halted on releasing fresh offers, while some maintained stable offers for localized cargoes as oil prices plunged to multi-year lows following the escalation in tensions between Russia and Saudi Arabia, which led to rising uncertainty in the market. Moving to the third week, the leading Indian PVC producer declared a price protection, which sparked a downward adjustment of between INR500-1,000/ton ($6-13/ton) on localized PVC offers via traders from a week earlier. On March 18, the producer withdrew the price protection and slashed local offers by INR2,500/ton ($33/ton) from a week earlier. In the final week of the month, the number of fresh offers was limited as the country has been under lockdown since March 24. From the import market, the leading Taiwanese PVC producer announced March shipment offers to the market with an increase of $10/ton from a month earlier, a discount of $10/ton was applicable for purchasing at 500 tons and above.

In general, demand for PVC in the India market exhibited a mixed performance during the first quarter of 2020. Throughout January, overall demand in India remained healthy as the number of inquiries and transactions had slightly increased, supported by the leading Indian PVC producer’s pricing strategy. However, some traders claimed that prolonged winter season in the Northern part of the country and sufficient inventory on end-buyers’ end kept a lid on demand. In February, most sources in India revealed that the market showed signs of slowing, citing the liquidity issues that have kept the financial sector on its heels, slow sales for end products, sufficient inventory on hand, the expectation for lower prices, and delayed seasonal demand have led to a significant decline in demand. In the final week of the month, most market players started to leave their desks for the Holi Festival from March 9 to March 10.

In March, Saudi-Russia’s oil price war, weakening Rupee and Coronavirus fears, took a toll on the economy, pushing the PVC market into a slowdown. As of March 9, Indian rupee touched a 17-month low against the greenback following a global financial market meltdown signalled that the world was staring at a coronavirus-led economic recession. As the number of coronavirus infections continued to rise, the Indian government imposed a nationwide lockdown from March 24 until April 14 in a bid to combat the spread of Coronavirus. Following the 21-day nationwide lockdown, several Indian producers have been forced to shut down their plants, such as Finolex Industries, DCW Ltd., DCM Shriram. On March 30, India’s Chemplast Sanmar declared a force majeure on PVC supply due to nationwide lockdown. The producer shut down the EDC, Chlorine, Caustic Soda plants, as well as its 300,000 tons/year PVC plant until further notice.

Entering the second quarter, the majority of Indian market players expressed concern over the ability of the PVC market to recover. Some sources believe that the demand for PVC will be affected by the upcoming monsoon in June before the market is fully recovered from the Coronavirus impacts. While others foresee that import offers will hover near new lows of $600/ton-level considering current feedstock prices and bearish sentiment.

Range of local/localized ethylene-based PVC transactions in January on cash/credit term, EXW/FD basis (excluding 18% GST in all terms)

Origin	Transaction Type	Offers (INR/ton)	Equivalent in USD/ton	Delivery Term	Delivery Location
Egypt	Offer Given	72,000	945	EXW	Delhi
India	Offer Given	74,000-75,500	971-991	EXW	Cuddalore
India	Sold	75,500	991	EXW	Cuddalore
India	Offer Given	74,500-74,700	978-980	EXW	Delhi
India	Offer Given	71,000-75,000	932-984	EXW	Mumbai
India	Offer Received	75,300	988	FD	Raniganj
Japan	Offer Given	73,000	958	EXW	Mumbai
Japan	Offer Received	70,500	925	EXW	Mumbai
Russia	Offer Given	72,000-73,500	945-965	EXW	Delhi
Russia	Sold	73,000	958	EXW	Delhi
Russia	Offer Given	72,000-72,500	945-951	EXW	Gujarat
Russia	Offer Received	71,500-72,000	938-945	EXW	Gujarat
Russia	Offer Given	71,000-71,500	932-938	EXW	Mumbai
Russia	Offer Received	69,500	912	EXW	Mumbai
Russia	Purchased	70,000*	919	EXW	Mumbai
Saudi	Offer Given	72,500	951	EXW	Mumbai
Saudi	Sell Idea	72,000-72,500	945-951	EXW	Mumbai
South Korea	Offer Given	73,000-74,000	958-971	EXW	Delhi
South Korea	Sell Idea	75,000-76,000	984-997	EXW	Delhi
South Korea	Sold	74,000	971	EXW	Delhi
South Korea	Offer Given	72,000-73,000	945-958	EXW	Gujarat
South Korea	Sold	72,500-73,000	951-958	EXW	Gujarat
South Korea	Offer Given	72,000	945	EXW	Mumbai
South Korea	Offer Received	71,250	935	EXW	Mumbai
Taiwan	Offer Given	73,000-75,000	958-984	EXW	Delhi
Taiwan	Offer Given	72,500-73,500	951-965	EXW	Gujarat
Taiwan	Offer Given	71,000-73,000	932-958	EXW	Mumbai
Taiwan	Offer Received	72,000	945	EXW	Mumbai
Taiwan	Purchased	72,000	945	EXW	Mumbai
Thailand	Offer Given	73,000-74,000	958-971	EXW	Delhi
Ukraine	Offer Given	71,000-72,500	932-951	EXW	Gujarat
Ukraine	Offer Given	71,000-71,500	932-938	EXW	Mumbai
Ukraine	Offer Received	69,500	912	EXW	Mumbai
Ukraine	Purchased	69,500-71,000	912-932	EXW	Mumbai
Ukraine	Sell Idea	72,000-72,500	945-951	EXW	Mumbai

Description: *Offers on 30 days credit term

Range of import PVC transactions in January, CIF India Main Port basis

Origin	Product	Transaction Type	Offers (USD/ton)	Payment Term
China	Acetylene-based	Offer Received	900	LC at sight
Central Asia	Ethylene-based	Offer Received	860-880	LC 90 days
Central Asia	Ethylene-based	Purchased	870	LC 90 days
Central Asia	Ethylene-based	Bid Given	865	LC at sight
Central Asia	Ethylene-based	Offer Received	865	LC at sight
Europe	Ethylene-based	Offer Received	880	LC 90 days
Europe	Ethylene-based	Offer Received	870-900	LC at sight
Far East Asia	Ethylene-based	Buy Idea	880-890	LC 90 days
Far East Asia	Ethylene-based	Offer Given	890-900	LC 90 days
Far East Asia	Ethylene-based	Offer Received	900-980	LC 90 days
Far East Asia	Ethylene-based	Buy Idea	870-900	LC at sight
Far East Asia	Ethylene-based	Offer Given	890-950	LC at sight
Far East Asia	Ethylene-based	Offer Received	880-930	LC at sight
Far East Asia	Ethylene-based	Price List	880-910	LC at sight
Far East Asia	Ethylene-based	Purchased	880-910	LC at sight
Far East Asia	Ethylene-based	Sell Idea	885-940	LC at sight
Far East Asia	Ethylene-based	Sold	880-940	LC at sight
Middle East	Ethylene-based	Offer Received	820-840	LC at sight
South America	Ethylene-based	Offer Given	880	LC 90 days
South America	Ethylene-based	Sold	880	LC 90 days
South America	Ethylene-based	Offer Received	830	LC at sight
Southeast Asia	Ethylene-based	Offer Received	925	LC 90 days
Southeast Asia	Ethylene-based	Offer Given	915	LC at sight
Southeast Asia	Ethylene-based	Offer Received	915-925	LC at sight
Southeast Asia	Ethylene-based	Sold	915	LC at sight

Range of local/localized ethylene-based PVC transactions in February on cash/credit term, EXW India basis (excluding 18% GST in all terms)

Origin	Transaction Type	Currency	Offers/ton	Equivalent in USD/ton	Delivery Location
India	Offer Given	INR	76,500	1,004	Cuddalore
India	Offer Given	INR	72,000-74,000	945-971	Delhi
India	Offer Given	INR	72,000-76,000	945-997	Mumbai
India	Offer Received	USD	860	-	Mumbai
India	Offer Received	INR	73,000	958	Mumbai
Iran	Offer Given	INR	72,500	951	Delhi
Japan	Offer Given	INR	71,000	932	Mumbai
Russia	Offer Given	INR	71,000	932	Bhiwandi
Russia	Offer Given	INR	72,500-75,000	951-984	Delhi
Russia	Offer Given	INR	71,500-72,000	938-945	Gujarat
Russia	Offer Given	INR	71,000	932	Mumbai
Russia	Purchased	INR	71,000-71,500	932-938	Mumbai
South Korea	Offer Given	INR	73,000-76,000	958-997	Delhi
South Korea	Offer Given	INR	72,500-73,000	951-958	Gujarat
South Korea	Offer Given	INR	72,000-72,500	945-951	Mumbai
South Korea	Sell Idea	INR	72,500	951	Mumbai
Taiwan	Offer Given	INR	73,250-73,750	961-968	Bhiwandi
Taiwan	Offer Given	INR	74,000-76,000	971-997	Delhi
Taiwan	Sold	INR	73,500	965	Delhi
Taiwan	Offer Given	INR	71,000-73,500	932-965	Mumbai
Taiwan	Offer Given	INR	72,000-72,500	945-951	Mumbai
Taiwan	Sold	INR	72,000-73,500	945-965	Mumbai
Thailand	Offer Given	INR	74,500-75,000	978-984	Delhi
Thailand	Offer Given	INR	71,000	932	Mumbai
Ukraine	Offer Given	INR	73,000	958	Delhi

Description: *Offers on 60 days credit term

Range of import PVC transaction in February, CIF India Main Port basis

Origin	Product	Transaction Type	Offers (USD/ton)	Payment Term
China	Acetylene-based	Offer Received	800-830	LC at sight
China	Acetylene-based	Purchased	820	LC at sight
Central Asia	Ethylene-based	Offer Received	870-890	LC at sight
Central Asia	Ethylene-based	Purchased	880	LC at sight
China	Ethylene-based	Offer Received	810	LC at sight
Europe	Ethylene-based	Offer Received	875	LC 90 days
Europe	Ethylene-based	Buy Idea	840	LC at sight
Europe	Ethylene-based	Offer Given	890	LC at sight
Europe	Ethylene-based	Offer Received	870-900	LC at sight
Far East Asia	Ethylene-based	Offer Given	890	LC 90 days
Far East Asia	Ethylene-based	Offer Received	910-960	LC 90 days
Far East Asia	Ethylene-based	Bid Given	870	LC at sight
Far East Asia	Ethylene-based	Bid Received	970-980	LC at sight
Far East Asia	Ethylene-based	Buy Idea	870-920	LC at sight
Far East Asia	Ethylene-based	Offer Given	900-980	LC at sight
Far East Asia	Ethylene-based	Offer Received	900-980	LC at sight
Far East Asia	Ethylene-based	Price List	910-930	LC at sight
Far East Asia	Ethylene-based	Purchased	890-910	LC at sight
Far East Asia	Ethylene-based	Sell Idea	890-910	LC at sight
Far East Asia	Ethylene-based	Sold	900-980	LC at sight
Middle East	Ethylene-based	Offer Received	860	LC at sight
North America	Ethylene-based	Offer Received	850-860	LC at sight
Southeast Asia	Ethylene-based	Offer Received	944-950	LC 90 days
Southeast Asia	Ethylene-based	Offer Given	940	LC at sight
Southeast Asia	Ethylene-based	Offer Received	940-970	LC at sight
Southeast Asia	Ethylene-based	Purchased	940	LC at sight
Southeast Asia	Ethylene-based	Sold	940	LC at sight
South America	Ethylene-based	Buy Idea	840	LC at sight
South America	Ethylene-based	Offer Received	860-880	LC at sight
South America	Ethylene-based	Price List	930	LC at sight

Range of local/localized ethylene-based PVC transactions in March on cash, EXW India basis (excluding 18% GST in all terms)

Origin	Transaction Type	Offers (INR/ton)	Equivalent in USD/ton	Delivery Country
Egypt	Offer Given	72,500-73,500	951-965	Delhi
India	Purchased	72,500	951	Chennai
India	Offer Given	76,500	1,004	Cuddalore
India	Offer Given	73,500-76,000	965-997	Mumbai
India	Offer Received	76,000	997	Mumbai
India	Purchased	71,500	938	Mumbai
Japan	Offer Given	74,000	971	Delhi
Japan	Offer Received	75,000-76,500	984-1,004	Kolkata
Japan	Purchased	74,500	978	Kolkata
Russia	Sell Idea	71,000	932	Bhiwandi
Russia	Offer Given	70,000-70,500	919-925	Mumbai
Singapore	Offer Given	73,000-74,000	958-971	Delhi
South Korea	Offer Given	73,000-76,000	958-997	Delhi
South Korea	Offer Given	72,500-73,000	951-958	Gujarat
South Korea	Offer Received	73,000	958	Mumbai
Taiwan	Sell Idea	73,250-73,750	961-968	Bhiwandi
Taiwan	Offer Given	73,000-76,000	958-997	Delhi
Taiwan	Offer Received	75,500-76,500	991-1,004	Kolkata
Taiwan	Offer Given	73,500-74,000	965-971	Mumbai
Taiwan	Offer Received	71,000-73,000	932-958	Mumbai
Taiwan	Purchased	70,500-71,000	925-932	Mumbai
Thailand	Offer Given	74,500-76,000	978-997	Delhi
Ukraine	Offer Given	73,000-75,000	958-984	Delhi

Range of import PVC transactions in March, CIF India Main Port basis

Origin	Product	Transaction Type	Offers (USD/ton)	Payment Term
China	Acetylene-based	Offer Received	780-820	LC at sight
Ukraine	Ethylene-based	Bid Given	870	LC at sight
Japan	Ethylene-based	Offer Given	900-910	LC 90 days
Japan	Ethylene-based	Offer Given	970-980	LC at sight
Taiwan	Ethylene-based	Offer Given	850-860	LC at sight
Russia	Ethylene-based	Offer Received	871	LC at sight
Ukraine	Ethylene-based	Offer Received	835	LC 90 days
Ukraine	Ethylene-based	Offer Received	890	LC at sight
Japan	Ethylene-based	Offer Received	900-980	LC at sight
South Korea	Ethylene-based	Offer Received	835-850	LC at sight
South Korea	Ethylene-based	Offer Received	845-850	LC 90 days
Singapore	Ethylene-based	Offer Received	860	LC at sight
Thailand	Ethylene-based	Offer Received	865	LC 90 days
Taiwan	Ethylene-based	Offer Received	835	TT
Taiwan	Ethylene-based	Offer Received	840-850	LC at sight
Taiwan	Ethylene-based	Offer Received	860	LC 90 days
Taiwan	Ethylene-based	Price List	835-860	LC at sight
Japan	Ethylene-based	Purchased	970	LC at sight
Taiwan	Ethylene-based	Purchased	840	LC at sight
Japan	Ethylene-based	Sold	900-910	LC 90 days
Japan	Ethylene-based	Sold	960-970	LC at sight
Taiwan	Ethylene-based	Sold	850	LC at sight

Tags: Asia Pacific,English,ISC,India,PVC,Quarterly

Published on April 11, 2020 10:21 PM (GMT+8)
Last Updated on April 11, 2020 11:04 PM (GMT+8)

QuarterlySSESSMENTS: Q1 2020 India PVC Prices

Author: SSESSMENTS

QuarterlySSESSMENTS: Q1 2020 India PVC Prices

Author: SSESSMENTS

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