Local producer slashed PVC prices in India on weak demand

A major local producer in India has announced new PVC offers to the domestic market with INR3,000/ton ($44/ton) reduction from last month due to the sluggish demand condition. The producer has also withdrawn the price protection scheme introduced in the previous week. 

Sources said that the lack of governmental project ahead of the General Election has curtailed the demand and drag prices lower despite the firm upstream costs and the traditional high demand season. 

“With such large reduction in the local ground, we think major overseas sellers might have to concede to a similar cut in order to attract purchasing interest. We are on the wait and see now,” a local trader commented.

Many players initially called for a $20/ton reduction in April shipment offers from major overseas sellers, however, with the latest prices in the local market, these players started to change expectation to $40-50/ton cuts from import ground.