Indian PVC producers cut list prices for October to boost demand

18 October 2012 08:38  [Source: ICIS news]

SINGAPORE (ICIS)--India’s polyvinyl chloride (PVC) list prices for October shipments were cut by Indian rupees (Rs) 2.50/kg ($47.30/tonne) to Rs60.50/kg ($1,144.10/tonne), market sources said on Thursday.

The reduction in the prices, which are on an ex-works (EXW) basis, was made effective on 18 October in order to boost buying amid lacklustre demand, a regional producer said.

This is the second price reduction seen in October. Local manufacturers had earlier announced a reduction of Rs3.00/kg with effect from 5 October from September levels to Rs63.00/kg EXW.

On the imports front, offers for northeast Asian product to India are currently at $1,020-1,030/tonne (€775-783/tonne) CFR (cost & freight) India for November shipments, according to a chief Asian producer. These offers are lower by $20-30/tonne from the week ended 12 October because of weak demand, according to ICIS data.

A Taiwan-based exporter said that it will make offers for November-loading cargoes in the following week.

US-origin cargoes were offered at $960-970/tonne CFR India, but there were no takers because of the lengthy voyage time involved, market sources said. These cargoes are subject to anti-dumping duties (ADDs) of $45/tonne.

However, buying interest in India remained weak following a post-monsoon slump, sources added.

Market participants are uncertain if there will be a pick-up in demand. Some say that buying sentiment is likely to improve in end-October when it is the pre-festive peak for PVC purchases, while others expect demand to remain weak until mid-November.

“Buyers [Farmers] prefer to spend on gold and other household articles during the Diwali season, and look to purchase pipes after their festive expenses are met. We can expect any demand improvement only after 15 November,” a regional producer of PVC pipes said.

The chief use of PVC pipes in India is in the agricultural irrigation sector, for subterranean pipes and fittings.

($1 = Rs52.88)

By: Veena Pathare
+65 6780 4327

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