Import PVC hits 10-month low in India
Sept. 27, 2018
Despite the imminent end of the monsoon season, most buyers in India’s import PVC market elected to limit their purchases for October, pointing to unstable economic conditions. Following a major Taiwanese producer’s price cut, other Asian producers also approached the Indian market with sizeable drops for October, yet they met with buyers’ resistance.
Data from ChemOrbis Price Index reveal that the weekly average of import PVC k67 prices has tumbled to its lowest level since December 2017 while it has witnessed a cumulative decrease of $70-75/ton in the past six weeks.
A trader based in India noted, “Demand is still limited given the volatility of the Indian rupee while higher crude oil prices might also have a negative impact on our exchange rate over the short term. Buyers are resisting offers above the $900/ton CIF level.”
The overall range for import PVC k67 prices for Taiwanese and South Korean origins is currently quoted at $920-930/ton CIF India, cash. As for other origins, including Thai, Russian, Ukrainian and Mexican; prices are standing mostly at $900/ton CIF, cash. On a weekly comparison, import prices suggest decreases of around $20/ton.
Meanwhile, a trader reported receiving an offer for US k67 at $860/ton CIF, cash. He commented that American PVC already lost its competitive edge upon visible cuts from Asian producers.