No major PVC price fluctuation likely in India in the near term, demand to stay firm – 3 Jan 2014

PVC price in India is not likely to undergo any major upward movement in the near term, as indicated by the prevailing demand pattern alongwith the stock situations in the major markets in the country. Many PVC item manufacturers said that they carried out normal production activities in their units, and demand for their end-products were active. Traders, on the other hand, saw regular off-takes of the Vinyl-based polymer. In the context of the prevailing trading environment, a trader in the Delhi market told Indianpetrochem," Demand for PVC is uniform, and no major fluctuation in the price for the polymer could be expected in the coming days." 
 

In the Delhi and Mumbai markets, PVC today was sold at around Rs 81.50 a kg and Rs 80 a kg respectively. Reliance Industries Limited, in its price revision effective from January 1,2014, kept PVC price unchanged.
 

However, the recent developments in the Asian region indicate that PVC offers from producers in the continent to India, for shipment in February 2014, are likely to be quoted higher, as a result of mounting upstream costs. Besides, the possibility of demand for PVC getting stronger in India in the coming days could also prompt Asian producers to raise their PVC offers to India.

Interestingly, the recent reduction of import duty by the Indian government on PVC imports from the South East Asian region is also likely to enable the major PVC producers in Asia, like Formosa Petrochemical Corporation, LG Chemical  Corporation and Hanwha Chemical Corporation to conclude more deals in India in the coming days.