Tuesday 22 April 2014

PVC price not likely to go up in India on account of inactive demand

PVC prices are likely to remain almost stable in Indian polymer markets, as indicated by the prevailing demand and supply conditions. Demand for the Vinyl-based polymer has failed to attain active momentum in the country's markets as the pipe industry (agricultural as well as construction) is still in the slow-down state. A polymer trader in the Delhi market told Indianpetrochem in the context of the prevailing market conditions in respect to the polymer," Demand for PVC has undergone slight improvement, and it is moderately active." He further said," I do not foresee any notable fluctuation in price of the polymer in the coming days. The price is most likely to remain stable."


Several PVC pipe manufacturers across the country told Indianpetrochem that off-takes of their pipes have not been active, and also, they did not expect their pipe sales to attain momentum in the near term.  They, thus, curtailed their manufacturing activities in their factories, resulting in lessening of PVC purchases.

Moreover, imports of the polymer have also become costly as the Taiwan-based Formosa Petrochemical Corporation has hiked its PVC offer to India for shipment in May 2014 by $20 per metric tonne. The offer is now quoted at $1,060 per metric tonne, on CIF basis.  The hike in the offer-price is likely to result in buyers preferring to purchase the domestic variants of the polymer, abstaining from importing.

Analyzing the prevailing market conditions, it could be inferred that Indian producers are most likely to roll over their ex-work prices for the polymer in the next price revisions.

By, Indu Bhusan Nath
ibnath@indianpetrochem.com

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