PVC shortage in Indian markets to ease as RIL likely to resume operations of its suspended plant soon

The prevailing acute shortage of PVC stocks in Indian polymer markets is likely to ease soon as Reliance Industries Limited (RIL) is going to resume commercial operations of its capacity-expanded plant in the next few days. The suspension of commercial operations of the plant, situated at Dahej, was for conducting trial runs after expansion of the production capacity from 245,000 tonne per annum to 345, 000 per annum. It was learnt from a source that the suspended plant was in advanced stages of resumption of operations, which could be expected in the next few days. The stoppage of supply from the plant has been rendering traders unable to cater to the active demand prevailing in the country, on account of full-fledged manufacturing of end-products, especially PVC pipes. Buyers, thus, were left with no other option but to purchase imported variants of the Vinyl-based raw material. Traders have been selling imported PVC at around Rs 94 a kg (LG), and Rs 92 a kg (China-origin), according to market inputs received.

Manufacturing of PVC pipes in the country are going on in full-swing as demand for the pipes is strong in the country, as learnt in communicating with several major PVC pipe manufacturers in the country. Demand for the PVC raw material is, thus, expected to remain firm in the coming days.

A Mumbai-based trader to Indianpetrochem," My PVC stocks have exhausted. The prevailing price of the material in the market is at around Rs 94 a kg."

However, price of the material will come down once RIL releases its fresh production to the markets.

Recently, Taiwan-based Formosa Petrochemical Corporation offered its PVC to India at $1,120 per metric tonne CIF, and for shipment in July 2014.

By, ibnath@indianpetrochem.com, yogender.singh@indianpetrochem.com