Sluggish PVC demand conditions in India indicate no upward price movement in the near term – 5 Feb 2014

PVC demand has weakened in the major markets in India as the prevailing prices are high to keep most buyers away from purchasing the raw material. PVC prices have escalated considerably in the country's polymer markets, post producers increasing their ex-work prices, in response to rising international prices. The country's largest PVC producer: Reliance Industries Limited, increased its ex-work price for the polymer successively during the last two price revisions. PVC is currently sold in the major markets in the country at around Rs 83-85 a kg. 
 

Indianpetrochem's market research, in the implied context, has revealed that the weakening of PVC off-takes in the country's markets resulted primarily due to most agricultural pipes manufacturers in the country lowering their operating rates in their factories, as sales of the pipes were sluggish. Many such manufacturers also said that they restricted to purchase the expensive raw material to avoid inflation in prices of their pipes, as agricultural season is approaching. They expected sales of the pipes to gain momentum towards the end of this month, when agricultural activities are expected to gain momentum in the country.
 

Besides, the latest price of the polymer in the South East Asian region did not undergo any upward movement from the week-ago rate to cause any upward influence on the price in India.
 

Taking account the immunity of PVC price to international price movements, and the sluggish demand conditions prevailing in the country, the price could be confidently expected not to undergo any upward movement in the near term.