14 June 2013 10:26 [Source: ICIS news]
SINGAPORE (ICIS)--India’s polyvinyl chloride (PVC) producers hiked their list prices by rupees (Rs) 1.50/kg ($25.86/tonne) following the weakening of the local currency against the US dollar, market sources said on Friday.
The new PVC list price of Rs67.50/kg EXW (ex-works) for June lots took effect 13 June, with an import parity of $1,050/tonne CFR (cost and freight) India.
Prices quoted on an EXW basis do not include freight, taxes and other charges.
Indian PVC producers had previously raised their list prices by Rs2.50/kg on 1 June to account for the weaker rupee that made import of feedstocks expensive. June PVC lots had been sold out in end-May amid delay in arrivals of imported material against upbeat demand.
The Indian rupee fell to an all-time low of around Rs59 to the US dollar this week, from under Rs55 four weeks ago.
PVC offers for July-loading cargoes began early this week with Taiwanese cargoes, which are subject to additional anti-dumping duties (ADDs) of $20-22/tonne, being offered at $1,020-1,030/tonne CFR India.
However, the sliding rupee kept most traders and end-users at the sidelines despite limited availability of product in the domestic market.
Some converters are opting to wait for the announcement of the bulk of offers for July-loading cargoes of Taiwan and South Korean origin next week.
PVC pipe demand in the region was heard to show signs of softening, following the arrival of monsoon in many parts of India, which is the second biggest importer of PVC in Asia.
India’s monsoon season begins in June and lasts until September and is a traditional lull demand season for PVC resin and pipes.
($1 = Rs58.00)
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