PVC prices in India are not likely to go up or down in the coming days, but remain stable. Despite prevalence of sluggish demand conditions, the price is not likely to decline as high feedstock costs are constraining the producers in the country to restrain from lowering the price. Demand for the polymer has continued to remain sluggish as sales of agricultural pipes, the predominant PVC end-industry, continued to be inactive. Manufacturers of such pipes have, thus, curtailed their factory operating rates, resulting in weakening of PVC demand in the country.
Interaction with several traders in the major polymer markets in the country revealed that demand for domestic as well as imported variants of the polymer remained sluggish, and they did not foresee any improvement in the demand conditions in the medium term.
A Delhi-based trader told Indianpetrochem in the regard," Demand for PVC has not undergone any improvement, it is still weak." He further commented," I do not foresee any improvement in the demand conditions at least upto the beginning of the second half of the next month."
An importer in Mumbai said," Affinity for PVC imports among buyers is not active as the current international offers are at high rates ."
The prevailing international PVC offers to India are at $1,070-1,090 per metric tonne CIF.
Price of the polymer will moderate only when prices of the principal feedstocks--EDC and VCM--decline in Asian markets, and that will take effect only when cost of the corresponding feedstock--Ethylene--will go down. Ethylene prices in Asian markets have been at high rates due to supply issues.
Many market participants expect that Ethylene price will moderate by the end of March 2014.
By, Indu Bhusan Nath
ibnath@indianpetrochem.com
Interaction with several traders in the major polymer markets in the country revealed that demand for domestic as well as imported variants of the polymer remained sluggish, and they did not foresee any improvement in the demand conditions in the medium term.
A Delhi-based trader told Indianpetrochem in the regard," Demand for PVC has not undergone any improvement, it is still weak." He further commented," I do not foresee any improvement in the demand conditions at least upto the beginning of the second half of the next month."
An importer in Mumbai said," Affinity for PVC imports among buyers is not active as the current international offers are at high rates ."
The prevailing international PVC offers to India are at $1,070-1,090 per metric tonne CIF.
Price of the polymer will moderate only when prices of the principal feedstocks--EDC and VCM--decline in Asian markets, and that will take effect only when cost of the corresponding feedstock--Ethylene--will go down. Ethylene prices in Asian markets have been at high rates due to supply issues.
Many market participants expect that Ethylene price will moderate by the end of March 2014.
By, Indu Bhusan Nath
ibnath@indianpetrochem.com
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