PVC Demand Reviving in India; Prices to Stay Low – 4 Nov 2014

PVC demand is reviving gradually as end-industries, like pipe, profile and compounds, are back to business. Traders in the major Indian markets have started experiencing PVC sales as manufacturing activities of the consuming industries have gradually started picking up after the slowdown period. Sentiments of PVC buyers are also bullish as prices of the raw material have gone down significantly. PVC is sold in the major markets in the country at around Rs 79 a kg, remarkably lower than the price at around Rs 91 a kg, prevailed during the month of August 2014.

Decline Crude Oil prices in international markets have resulted in lowering price of Ethylene, that declined price of EDC, the principal raw material for PVC production, due to which, PVC prices have undergone downward movements in international markets, and the price also going down in India due to import price parity.

In the latest import offer update, Taiwan-based China General Plastic Corporation has offered its PVC at $990 per metric tonne to the Indian market, on CIF basis, and for shipment in end-November 2014.

The latest landed costs of PVC imports at the Nhava Sheva port is at $1,121-1,168 per metric tonne CIF.