18 September 2013 07:07 [Source: ICIS news]
SINGAPORE (ICIS)--Indian polyvinyl chloride (PVC) producers have enforced a week-long price protection policy to prospective buyers of the polymer, industry sources said on Wednesday.
The scheme, which is in effect on 18-25 September, is aimed at boosting PVC sales amid uncertainty in import prices, they said.
Buyers are reluctant to buy PVC at current domestic list prices, on expectations that prices will fall amid recent strengthening of the Indian rupee. They have stayed away from sourcing PVC from the domestic market until the price trend becomes clearer, market sources said.
Current domestic PVC list prices in India have an import parity of $1,070/tonne CFR India, up from $1,040-1,050/tonne CFR India in early September as the rupee appreciated.
The Indian rupee (Rs) was trading at around Rs63 to the dollar, easing from a record high of nearly Rs69 in late August.
With the price protection temporarily in place, Indian PVC producers are pledging to reimburse buyers of excess payment if the polymer’s import prices declined next week.
“We are waiting for offers from Formosa [Plastics of Taiwan] to understand where prices are likely to head, and then we will announce our prices,” said a source at one of the major PVC producers in India.
Formosa Plastics, which is a major supplier of PVC in Asia, is expected to announce its offers for October shipments early next week
($1 = Rs63.07)
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