India’s Reliance Industries announces price protection for PVC

23 September 2011 10:48  [Source: ICIS news]

SINGAPORE (ICIS)--India’s Reliance Industries Limited (RIL) has issued a price protection for polyvinyl chloride (PVC) in India with effect from 22 September, a company source said on Friday.

The price protection will allow RIL’s customers to benefit from any future price cuts retroactively by reimbursing the difference between new prices and the prices paid in the event that the prices fall later this month.

The PVC major implemented the price protection to revive buying activity in the slow domestic market.

“Consumers have adopted a wait-and-see approach and maintained minimum buying during the last few weeks because of macroeconomic factors,” the source added.

“This move will [hopefully] remove the fears instilled in the buyers and perhaps stimulate some buying interest,” the source added.

The domestic prices of PVC are currently at Indian rupees (Rs) 63/kg (Rs63,000/tonne, $1,273/tonne) ex-works, producers said.

The overnight fall in chemical stocks on 22 September has left market players in India uncertain about the future economic outlook, an Indian trader said.

The Dow Jones Industrial Average fell by 391 points during overnight trade on 22 September to close at 10,733.83, a 3.51% decline.

News of declining US PVC exports as a result of the weak economic market there has created an unclear outlook of the recovery of PVC prices.

Major India PVC producers include RIL, Finolex Industries and ChemPlast Sanmar.

($1 = €49.47)

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By: Loh Bowei

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