Indian PVC Market Players Cited Several Factors Supporting Buying Sentiment
- Local PVC offers from Indian producers captured stable
- Import PVC offers of Russia origin went up by $20/ton
- Local and import PVC offers expected to increase
Buying sentiment has improved, Indian PVC market players cited several reasons as the supporting factors. With effect from January 23, 2020, SSESSMENTS.COM noted that the leading Indian PVC producer decided to roll over local prices, while the discount scheme for the month remains valid. Likewise, another PVC producer in the country also maintained their offers stable on a weekly comparison. For localized cargoes, a trader received PVC offers from Ukraine at INR69,000/ton ($965/ton) on cash, EXW Mumbai basis and excluding 18% GST. As the price for localized cargoes of Ukraine origin is the lowest among all the offers received by the trader, the deal was closed at the initial offer level. In the import market, offers for PVC of Russia origin surfaced with an increment of $20/ton on a monthly comparison.
In general, demand for PVC resins in India this week remains robust. Citing that buying sentiment has improved due to four prominent reasons. First, the anticipation of the additional customs duty, which is expected to come into effect from February 1. Second, the assumption of the limited supply from the leading Indian PVC producer as market talks have it that the producer will conduct maintenance shutdown. Third, limited allocation from foreign producers, and fourth, the upcoming maintenance shutdown at Japanese PVC producer’s plant which led to higher prices for Japan cargoes. No supply issues reported at the moment. The leading Indian PVC producer’s source informed SSESSMENTS.COM that the company has no plan to conduct maintenance at its PVC plant in this quarter.
Looking ahead, Indian market players opined to SSESSMENTS.COM that demand will remain robust in the upcoming weeks. While local PVC price is expected to increase around INR1,000-1,500/ton ($14-21/ton) if the customs duty is increased. Additionally, March shipment from the leading Taiwanese PVC producer will likely increase between $20-30/ton from February shipment’s level.
Local/localized ethylene-based PVC offers on cash, EXW basis (excluding 18% GST in all terms)
Tags: English,EN PVC INDIA WSS,India,Indian Subcontinent (ISC),Polyvinyl Chloride (PVC),WeeklySSESSMENTS India PVC Prices,PVC prices
January 28, 2020 11:56 AM