India PVC producers raise PVC prices by Rs1.5/kg on weaker currency

16 December 2011 09:11  [Source: ICIS news]

SINGAPORE (ICIS)--India’s major polyvinyl chloride (PVC) producers have raised their domestic list prices for December by Indian rupees (Rs) 1.50/kg (Rs1,500/tonne, $28/tonne) because of the weakening local currency and higher feedstock costs, industry sources said on Friday.

The price increase came into effect on 15 December and the latest list prices are at Rs64.50/kg on a delivered (DEL) basis.

“The weakening local currency has become a concern for all importers and they prefer local material,” a major Indian producer said.

At the same time, producers said they are concerned over the uncertainties in the upstream ethylene market.

Ethylene prices increased by $30-60/tonne (€23-46/tonne) during the past two weeks from an average price of $1,110/tonne CFR (cost & freight) northeast (NE) Asia in the first week of December to $1,140-1,170/tonne CFR NE Asia on 15 December.

“[The increase] is also cost-pushed,” a second local producer said.

However, the producers added that the hike in prices is difficult for buyers to accept.

“We see hesitance in purchasing,” a third producer said, adding that most players are staying on the sidelines and expecting the prices to fall in the near term.

Major PVC producers in India include Reliance Industries Limited (RIL), Finolex Industries and Chemplast Sanmar. 

($1 = Rs53.64)

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By: Yu Guo
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