26 May 2014 08:07 [Source: ICIS news]
KOLKATA (ICIS)--Indian demand for polyvinyl chloride (PVC) was forecast to grow in a range of 8-8.5% during 2014-15 and with no new capacity coming up in the current fiscal, the country’s import dependency was expected to increase, according to an industry association.
With the revival in the economy and expected easing of monetary policy, performance of various end user sectors of PVC too would improve triggering robust PVC demand and India’s import dependency will continue to increase in the current year, according to a report of Chemicals and Petrochemicals Manufacturers’ Association of India (CPMA).
Based on the growth rate, total PVC demand during 2014-15 was forecast at 2.82m tonne, up from 2.61m tonne during the previous year, the report said.
Domestic PVC production was predicted to maintain at around 1.5m tonne during 2014-15, almost the same as during the previous year.
Since no new planned capacity was expected to go into production, the entire incremental PVC demand of 0.21m tonne would have to be met through imports.
Hence imports during the year was estimated at around 1.40m tonne, up from an estimated 1.19m tonne PVC imported into the country during 2013-14, the report said.
User sectors like agriculture and construction were expected to be key drivers for domestic PVC demand, the report added
However according to an official in CPMA, the demand projections were based on normal monsoon rains and sustained growth in agriculture and below normal monsoon rainfall as per first forecast issued by the Indian Meteorological Department (IMD) could be caveats to PVC demand growth forecast.
At the same time, the new Indian government taking charge on May 26 evening has already announced definitive boosters to infrastructure and construction sectors that would have positive trickle down impact on PVC consumption, the official added.
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