Indian traders: PVC demand is fading amid improved supplies

Limited supply stemming from a series of production issues in the region has stimulated strong demand in India over the past two months, which surprised many players who were expecting calmer market condition during the monsoon season. This week, import PVC to the country continues to move higher with fresh offers from Fareast Asian makers, however, buyers are withdrawing from the market, claiming sufficient inventories.

A trader received Japanese PVC at $930/ton CIF India, excluding an anti-dumping duties of approximate $15/ton said, “Demand is weaker as supply is normalising. One of major domestic maker is now supplying full allocation to local market after several months having plants issues. We think market would remain on the stable trend in the near term and that demand might pickup again after the monsoon is over.”

Another source added, “Import prices above $900/ton threshold are facing stiff resistance from the buyers. We are monitoring further market development before implement any further measures. We think that plant shutdown in Fareast region would support the stable trend in the near term.”