India’s PVC market dips to new lows on Taiwan’s March cuts, players seek signs of bottom

Data from ChemOrbis Price Index show that S-PVC K67 prices on a CIF India basis have plunged to near five-year lows following a major Taiwanese producer’s latest price cuts for March. A recent drop in freight rates enabled the producer to trim its benchmark offers by $20/ton, adding to previous cuts amid ongoing Chinese oversupply and lingering antidumping duty (ADD) uncertainty. With prices steadily declining, players are now questioning whether the market has neared its bottom.

Taiwanese major lowers prices for 3rd consecutive month

For the third straight month, the Taiwanese major has cut its K67 offers to India, accumulating a total reduction of $70/ton. It announced a $25/ton drop in both January and February, followed by another $20/ton cut for March, bringing its latest offer to $740/ton CIF India, cash, the lowest level since June 2020.
A source from the producer attributed the latest reduction to lower freight costs to India, while noting that March offers to China remained stable at $725/ton CIF.

Import price range including all origins at lowest since May 2020

Typically, India’s PVC demand sees a seasonal boost in the first quarter, as buyers stock up ahead of the monsoon. However, this year, demand has remained sluggish. Delays in the long-anticipated ADD decision—expected since early November—combined with a lack of market support from the government’s budget have kept buyers cautious. Hopes for a demand rebound are now shifting toward late Q1.

While the Taiwanese major’s March K67 offer hit a low not seen since June 2020, the broader import market, including all origins, has seen K67 prices fall to $712/ton CIF—the lowest level since May 2020.



Offers from China break below $700 CIF threshold

Since returning from the Lunar New Year holiday, most Chinese sellers have maintained offers in the $720-730/ton CIF range. However, some Indian buyers reportedly secured deals as low as $710/ton last week.

Following the March announcement from Taiwan, a trader in India reported that some Chinese suppliers lowered K67 offers to $700-710/ton CIF, cash, with confirmed deals at these levels. Other traders even reported offers as low as $685/ton CIF cash for Chinese shipments.

Market players hope for a recovery in March

After the third consecutive price cut from the Taiwanese major, some players in India believe the market could be near its bottom, anticipating a delayed demand recovery in March to help stabilize prices.

“The Indian budget does highlight continued infrastructure spending to support economic recovery, but we need to see actual tenders before buyers return and prices rebound. Sentiment-wise, we may expect some improvement next month,” an Indian trader said.

Meanwhile, in China, downstream operating rates are gradually increasing post-holiday, while rising Dalian Commodity Exchange futures have boosted sentiment. A Chinese trader noted, “The local market is showing an upward trend, and we expect spot prices to rise soon. Some favorable domestic policies may also be announced.” Another trader added, “China’s PVC supply remains ample, but downstream operation rates are gradually increasing. While a price increase seems unlikely, price stability would be an ideal outcome.”