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Major overseas producers might announce October shipment offers for PVC to the regional market in the coming week and though the general expectation is that latest offers might be softer from last month; sources are raising a possibility that a steeper reduction might take place in India.

“We could be seeing a cut of up to $50/ton from last month to India market,” an Indian trader said. But what caused such a pessimistic sentiment? 

The depreciation of the Indian Rupee against the US dollar definitely has its role. The Rupee has slid approximately 12 per cent this year amid a wave of sell-off in emerging market currencies, which hurt imports deeply. 

“Without the large price cut, it is less likely that major Fareast Asian producer could achieve good sales results for October. Demand is not strong in India,” the source added. 

Couple of other international traders, who mainly deal with the Indian market, have also expressed a similar expectation. “Weak demand during monsoon season, coupled with the currency issues and availability of competitive USA materials. We think the downward pressure is rather significant,” a source said. 

Other suppliers are rather concerned with such expectation, citing that a $50/ton reduction might be too steep for the actual market condition. “We do agree that market might be softer in October, but we have a smaller expectation of around $20/ton. There is little support for a rebound at the moment,” a Southeast Asia producer reported to have sold our September allocation to India at $930-950/ton CIF India, said.