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Import PVC prices near all-time highs in India, disparity with China/SEA grows

by Shibu Itty Kuttickal -
by Merve Sezgün -
  • 03/09/2021 (03:15)
PVC supplies in India have continued to be tightened by shipping delays and higher freight costs, which has pushed import prices to near fresh record highs. The K67 market had hit an all-time high of $1700/ton CIF in mid-April while this week’s average stood at $1640/ton.

The market’s premium over China and Southeast Asia, meanwhile, grew further this week, making India a preferred destination for PVC cargoes.

Import prices up for 6th week in India

Import PVC K67 prices on CIF India basis have increased for the sixth consecutive week on the back of tighter supplies and robust demand. The weekly average of prices has gained a total of $250/ton since the uptrend kicked off in late July.

The overall price range for all origins was assessed at $1600-1680/ton CIF, cash this week. A K67 deal for a Taiwanese material, meanwhile, was reported at $1730/ton CIF for a small cargo, yet this was not included in the index.

Players expect the market to rise further in the near term as they believe that the tightness will remain at least till November. Demand is also expected to be buoyant as buyers in the country are willing to build stocks amid the approaching high season.

In the meantime, data from ChemOrbis Price Index suggest that the premium India carries over China and Southeast Asia PVC markets has grown notably. Indian prices currently show a premium of $300/ton, the highest since December 2020, to prices in China, while the premium against Southeast Asian prices is currently at $275/ton, the highest since ChemOrbis launched the index in 2008.

Local prices in India already hit fresh record high

According to ChemOrbis Price Index data, the weekly average of PVC K67 prices on FD India basis has already broken its previous record of $1866/ton and reached $1904/ton this week.

A major Indian producer notified a fifth straight hike in local prices to its domestic customers with effect from September 1, this time raising its offers by INR5000/ton ($68/ton). The producer has made five consecutive increases since 15th July, in all totaling INR17,000/ton ($232/ton).

Oct expectations call for 3-digit hikes from Taiwan

Players operating across Asian markets started to express their expectations regarding the Taiwanese major’s price announcement for October.

Following the producer’s decision to raise their September offers to all Asian markets by $50-80/ton, players’ expectations are towards sharper increases for October.

“We will not be surprised if the major producer approaches the markets with an increase of at least $200/ton. Supplies will remain tight and demand will likely be robust from India,” commented a trader.

The producer’s October allocation is expected to be quite limited as was the case for September, meanwhile.
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