Sluggish PVC demand conditions continues in India; price not likely to moderate – 18 Feb 2014

PVC off-takes are not likely to gain strength in Indian polymer markets in the near term as sales of agricultural pipes, the predominant end-product of the Vinyl-based polymer, have not yet gained momentum in the country. However, price of the polymer is not likely to moderate as a result, as landed costs of imports are still high. In the Delhi and Mumbai markets, PVC today was sold at around Rs 85 a kg and Rs 86 a kg respectively. 
 

PVC off-takes from the pipes sector in the country are also not likely to strengthen in the near future due to curtailment of manufacturing activities ahead of the upcoming elections.
 

But, price of the polymer will remain high, mainly due to influence of international price movement, arising out of high feedstock prices. The latest EDC and VCM prices in the South East Asian region were assessed at $484 per metric tonne and $975 per metric tonne respectively.
 

Moreover, the latest PVC offer is also quoted at a high price. Formosa Petrochemical Corporation, of Taiwan, has quoted its latest PVC offer to India at $1,090 per metric tonne, on CIF basis and for shipment in the next month.