09 May 2013 04:39 [Source: ICIS news]
TAIPEI (ICIS)--India’s polyvinyl chloride (PVC) market is expected to grow by 10% in fiscal year 2013, driven by infrastructure and agriculture demand, a producer said on Thursday.
The fiscal year 2013 is from 1 April 2013 to 31 March 2014.
“[For fiscal year 2013] we see 10% growth in PVC consumption after 14.5% growth in [fiscal year 2012],” said a senior executive at an Indian producer.
He spoke on the sidelines of the Asia Petrochemical Industry Conference (APIC) in Taiwan.
However, growth for fiscal year 2013 could be lower at 7-8% if the monsoon season in India is poor, meaning there is too much rain or not enough rain, said the source.
A poor monsoon season would negatively impact purchases of PVC agricultural pipes used for irrigation.
Typical consumption of suspension PVC averages 8-9% per year in India, said the executive.
“Construction - partially driven by government spending - and agriculture are the driving forces for PVC demand,” he said.
Government spending on infrastructure projects typically accounts for about 15% of total India PVC demand, the executive noted.
However, government spending could be jeopardised by a current accounts deficit, partly fuelled by a weak rupee versus the US dollar.
“With the weak rupee, costs for imported materials such as crude oil rise, contributing to the deficit,” the executive said.
Another concern is the use of fillers in PVC pipes sold in the retail market – a market that comprises 70% of India’s PVC sector.
“International standards say fillers should not make up more than 8% but there is rampant product using 15-25% filler and some…with 40% filler. The filler is calcium carbonate,” said the executive.
The APIC is being held in Taipei on 9-10 May.
Additional reporting by John Richardson
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