Import PVC to India continue to soften, sentiment remains weak

After a major Taiwanese producer stepped back on their PVC offers to Asia by $20/ton last week, bringing April shipment prices to March’s levels; other international suppliers have followed the move with some even reduced prices in a larger scale.

In fact, Indian buyers reported to have received Korean PVC offers at $1000/ton CIF India, LC 90 days term. The source added, “Buying interest in still weak. This is very surprising to us as demand normally pick up at this time of the year. We think besides the financial issues, lack of spending from government has also affected end product business.”

Even with the reduction for the main stream cargoes, buyers claimed to have received offers for Iranian PPV at $950-06/ton CIF India term with a buyer added, “Market is not highly preferred this parcel, yet it plays an important role in putting extra pressure on other international suppliers. We are not very optimistic about the near term outlook.”

Players in the country are expecting further discount to emerge in the coming month given the fact that local materials are still holding a more competitive position than import offers. However, international suppliers are hoping that several VCM plants shutdown in the near term would support the market sentiment.

Import PVC offers to India at the moment stand at $950-1020/ton CIF Indian, LC 0-90 days term.