The Government of India has removed Anti-Dumping Duty on imports of PVC of Asian and US origins, as learnt from a secondary source. Following which, Formosa Petrochemical Corporation, based in Taiwan, lowered its PVC offer to India for shipment in March 2014 by $20 per metric tonne, to $1,070 per metric tonne CIF. And, it seems that the other prominent PVC exporter to India in the Asian region, South Korea-based Hanwha Chemical Corporation, is also likely to lower its PVC offer to India, at $1,100 CIF, for shipment in the next month. While, the other South Korean producer, LG Chemical Corporation, is not yet heard to announce its latest PVC offer. But, the moot question is: will price of the polymer decline in India as a result of the removal of the duty, and the subsequent decrement, and the possible reduction of international PVC offers to the country? The answer is most likely in the negative.
Indian PVC producers are, however, not likely to lower their ex-work prices for the Vinyl-based polymer in the medium term (at least upto the second half of March 2014) as high feedstock costs will restrict the producers from any significant reduction in prices for the polymer. Prices of the principal feedstocks--EDC and VCM--in Asia have continued to remain high, due to price of Ethylene, the corresponding feedstock, continuing to be high on account of supply tightness. Meanwhile, PVC producers in India are currently learnt to be processing the polymer at high feedstock costs, which apparently rules out prospect of any moderation in price of the polymer in the coming days.
For accessing the historical prices of the feedstocks, readers can visit the 'Feedstocks' section of the website.
By, Indu Bhusan Nath
ibnath@indianpetrochem.com
(**Please note that the analysis is written on the basis of the hearsay in polymer markets, and subsequent information published in an online information provider. The original notification is not yet received, and it will be made available for readers' reference, once received.)
Indian PVC producers are, however, not likely to lower their ex-work prices for the Vinyl-based polymer in the medium term (at least upto the second half of March 2014) as high feedstock costs will restrict the producers from any significant reduction in prices for the polymer. Prices of the principal feedstocks--EDC and VCM--in Asia have continued to remain high, due to price of Ethylene, the corresponding feedstock, continuing to be high on account of supply tightness. Meanwhile, PVC producers in India are currently learnt to be processing the polymer at high feedstock costs, which apparently rules out prospect of any moderation in price of the polymer in the coming days.
For accessing the historical prices of the feedstocks, readers can visit the 'Feedstocks' section of the website.
By, Indu Bhusan Nath
ibnath@indianpetrochem.com
(**Please note that the analysis is written on the basis of the hearsay in polymer markets, and subsequent information published in an online information provider. The original notification is not yet received, and it will be made available for readers' reference, once received.)
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