India PVC producers hike prices on demand-supply

05 February 2007 07:56  [Source: ICIS news]

SINGAPORE (ICIS news)--Indian polyvinyl chloride (PVC) producers have raised domestic prices by Indian rupee (Rs)1/kg for February cargoes on the back of robust demand and limited availability, sources said on Monday.

 

“Prices of imported PVC have also risen so we felt the hike was justified,” said one producer.

 

Following the increase, domestic prices of PVC in India are Rs42/kg ($0.95/kg) ex-works.

 

The situation in India is in sharp contrast to the weakening sentiment in Chinese PVC markets where prices dipped by $20/tonne last week to $830-840/tonne CFR (cost and freight) northeast Asia due to buyers' reluctance to restock ahead of the Chinese new year holidays in mid-February.

 

Import PVC prices in India, on the other hand, have risen by $20/tonne since mid-December due to limited supply. 

 

Import prices were assessed at $840-845/tonne CFR India for carbide-based PVC and $870-900/tonne CFR India for ethylene-based material last Friday, according to global chemical market intelligence service ICIS pricing.

 

“Demand from the construction segment has been improving significantly, enhancing the appetite for PVC,” said a second producer.

 

The impending shutdown later this month at the 1.3m tonne/year Shintech PVC plant in the US has also strengthened global market sentiment, sources added.

 

($1 = Rs44.1)

By: Prema Viswanathan
+65 6780 4359

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