India’s PVC market facing downward pressure from lengthening supply
A trader based in India reported receiving offers for Russian, West European, Mexican and Brazilian cargoes at competitive prices. “Demand is slowing down due to the holidays while supply levels are rising and we believe that India will receive a larger amount of import cargoes next month. We predict that a Taiwanese major will lower their December prices by around $40/ton to maintain their competitiveness,” the trader stated. A pipe manufacturer added, “We are forecasting a $30/ton reduction for December from a Taiwanese major as Iranian and Brazilian suppliers are offering at competitive prices. Demand is slowing down ahead of the Diwali holidays and we believe that buying interest will only start to pick up by the second half of November.”
An agent of a Japanese producer reported, “Demand in India is retreating ahead of the holidays and we expect demand to remain muted until January. We hear that Brazilian material can be purchased at very attractive prices and are glad that we have already concluded our November allocation. According to our calculations, India received around 75,000 tons of imports this month but this number may rise to as much 110,000-120,000 tons next month.”
Inside India, players also report that the market is facing some downward pressure in the face of receding demand and competitively-priced exports. “Distributors lowered their local prices by INR1500-2000/ton ($23-30/ton), although local producers have not yet made any adjustments on their prices. We are not expecting to any see real revival in demand over the short term and we believe that competitively-priced imports will maintain some downward pressure on prices in the days to come,” a distributor stated.
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