03 October 2012 05:58 [Source: ICIS news]
By Veena Pathare
Buying usually picks up in mid-October ahead of the Diwali holiday in
On 28 September, PVC prices were assessed at $1,005-1,070/tonne (€784-835/tonne), down by an average of $20/tonne from the previous week because of a seasonal slump of demand post-monsoon, according to ICIS.
A season of heavy rains in
A relatively high volume of PVC cargoes from Europe, as well as carbide-based material from
“These [European, Chinese] cargoes are being sold at a discount of Indian rupees (Rs) 4-5/kg to the PVC list prices, giving a perception of oversupply in the market, driving prices downward,” a regional producer said.
Indian PVC list prices for October stood at Rs77-78/kg ($1.47-1.49/kg)
Availability of cheaper material sent regional traders and distributors to panic and start offloading Asian cargoes at lower prices, the producer said.
“Buyers say that when the same product is available with the local distributor at lower prices, why should [they] source imports,” said an Asian PVC producer.
A major Indian PVC producer announced a roll-over of its September prices for October for the time being, in the absence of clear direction from the key Chinese market. The producer said it would issue fresh list prices later in the month.
Market participants in
Between early June to mid-September, PVC import prices in
“You can definitely expect a correction in the list price later in the month, since there is also pressure from the downstream pipe buyers to lower prices for PVC pipes,” said a PVC producer that also manufactures PVC pipes.
As costs of PVC pipes increased, in line with rising raw material prices, pipe buyers have started preferring to purchase HDPE pipes, which have a higher impact resistance than PVC pipes.
PVC pipes and fittings are generally used in subterranean irrigation that does not expose them directly under the sun, which makes PVC plastics brittle.
At current prices, the gap between HDPE and PVC pipes has narrowed below Rs5 per unit from the usual gap of Rs7-8 per unit.
($1 = €0.77 / $1 = Rs52.40)Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections
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