Indian major cuts local PVC offers, signalling weakness in demand

Indian players reported having received fresh discount schemes for March delivery PVC cargoes from a major domestic producer. The adjustment ranging IN1500-2250/ton ($23-35/ton) depending on the purchased quantity is introduced amid heavy expectation for firmer price levels from overseas sellers.

“Domestic market is not as strong as expected and with the latest discounts from major local producers, we think it is difficult for international suppliers to achieve large hike for April shipment,” a trader said.

The latest ban on the Letters of Undertaking (LoUs) has yet to show effect on the market though there are talks that many buyers have to embark on the procedure to open Letters of Credit (LC) for previously purchased cargoes, which might result in slightly delay in shipment.