PVC price not to move upward in India; Softening of the price possible on international market indications – 21 Mar 2014

PVC prices in Indian markets are not going to go up in the coming days, but, are likely to come down, if the expectation of many market participants takes effect. Demand conditions for the polymer have not gained momentum in the country's polymer markets. In the context of the prevailing market conditions in respect to the Vinyl-based polymer, a Delhi-based trader told Indianpetrochem," Off-takes of PVC are still sluggish in the market as the major end-users have curtailed their production rates." He further said," I am also not able to foresee upto when the dull demand conditions will persist." 
 

Trading environment in the Ahmedabad market was also similar. A trader in the market commented, "PVC sales continue to be inactive in the market, and there is no likelihood of any upward movement in the price in the coming days."
 

In a deviation, demand for the polymer was moderately active in the Mumbai market, on account of pipe manufacturers actively operating their factories. A Mumbai-based trader said," Demand for PVC has strengthened moderately as pipe manufacturers have started purchasing the raw material."
 

The overall demand conditions in respect to the polymer will, however, will not strengthen significantly in the country in the medium term due to the approaching elections, during which, manufacturing of end-products will decline in almost all the major manufacturing clusters in the country. Compounding to the situation, the construction sector is also in a slow-down mode, and that will also play a decisive role in restricting demand for PVC.
 

Many market participants expect that price of the polymer will come down in the coming days as the price in key international regions have exhibited a softening trend. In the South East Asian region, the latest price was assessed at $1,042 per metric tonne, which is considerably lower than the price assessed in the region in the last week of the previous month, at $1,062 per metric tonne. Moreover, several traders in major Chinese markets also said that prices of the polymer in the markets were moving down on account of weak demand conditions. 
 

Readers can refer to the 'Domestic Prices' section of the website to access the prevailing price of the polymer in different cities.