Indian PVC makers may seek higher prices on high production cost

23 March 2012 11:13  [Source: ICIS news]

SINGAPORE (ICIS)--India’s major polyvinyl chloride (PVC) producers may hike prices again in the coming week in view of higher production costs linked to the weakness of the Indian rupee, while demand is not as good as initially expected, market sources said on Friday.

These producers implemented a Rupee (Rs) 1.50/kg (Rs1,500/tonne, $29/tonne) increase in their March domestic list prices of PVC on 8 March.

“Producers’ costs are getting higher not only due to upstream prices, [but] also due to [the] weakening local currency,” a major Indian PVC producer said.

Over the past month, the Indian rupee has depreciated against the US dollar by 4%.

“It is not surprising for local producers to hike their prices soon as their current prices are almost $20-30/tonne lower than import prices,” said an Indian converter.

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

($1 = Rs51.28)

By: Yu Guo
+65 6780 4359

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