Weak PVC demand in domestic,international markets might lead to Indian producers lowering ex-work prices – 18 Sep 2014

PVC demand continues to remain sluggish in Indian polymer markets, and indications are clear of the demand not strengthening  in the next few weeks. Demand for the Vinyl-based polymer is not only dull in India but also in key Asian markets. The market conditions also indicate that there is likelihood of producers lowering their ex-work prices for the polymer in their next price revisions. 
 

Demand for the polymer waned in the country's markets mainly due to the irrigation pipe sector slowing down on account of rainy season. Manufacturers of the pipes have been confronting with weak sales, and they do not expect demand for the pipes strengthening at least upto the end of the next month. Some of them speculated that demand for the pipes would strengthen with the onset of November 2014.
 

Stocks of the polymer are in ample quantities with traders, and supplies from the domestic producers are steady, without any production issue.

In China, demand for the polymer is weakening, resulting in the price declining. According to a Chinese trader, price of the polymer in that country's markets declined to around Yuan 6,700 per metric tonne on account of dull demand. He also speculated the price to go down further in the coming days.
 

Taking into account the Asian market conditions, stock situation and demand conditions in the domestic markets, the prospect of producers in the country lowering their ex-work prices for polymer cannot be ruled out.