Indian producer lifted local PVC prices on weakening local currency

According to market sources, a major Indian producer has announced new PVC offers to domestic buyers today with INR1000/ton ($15/ton) hike from last month to reach approximate $960/ton, EXW India, excluding excise duties, cash term. Players attributed such movement to the fact that the maker is capitalising on weakening Indian Rupee against the USD recently as demand remain sluggish.

A trader said, “Most buyers are paying more attention to import Iranian PVC cargoes at the moment, which are priced in the range $850-860/ton CIF India, TT 20:80 term. The increase in domestic offers therefore does not reflect the demand condition. We are not very confident about the near term market outlook.”

Besides, reduced inventories pressure from the supplier's side is also attributed to the price decision as Reliance took one of the PVC line off-stream since 24 May for a scheduled turnaround. Another buyer added, "Local prices are now higher than import materials, which might attract less buying attention especially amid a series of financial concerns."