Indian Imported PVC Market: Stability Amid Volatility

Key Highlights:

• Price Movements & Market Trends: PVC prices saw fluctuations, with initial gains stabilizing by month-end; RIL reduced prices by ₹1,000/MT.
• Supply & Demand Dynamics: Slow downstream recovery, high inventories, and weak calcium carbide markets limited further price growth.
• Industry News & Global Developments: Major PVC plant shutdowns announced by Fortishchem, Hanwha Solutions, and Braskem; Hanwha offered PVC at $740/MT CIF Nhava Sheva.
• Expert Outlook & Market Forecast: Supply recovery expected in March, but high inventories may suppress demand; export activity to provide market support.

Price Trends & Market Movement

• PVC prices vary across different brands and grades in multiple locations. In Mundra, ASNYL K57 (FJ57) is priced at ₹73,500/MT, while DAGU K57 (DG700) is available at ₹73,000/MT. 
• For K67 variants, XINFA SG5 is priced at ₹68,000/MT, SINOPEC S1000 at ₹69,700/MT, and FORMOSA S65D compounded PVC at ₹74,500/MT.
• LG LS100H compounded PVC is offered at ₹72,500/MT in Mundra and ₹72,000/MT in Bhiwandi. 
• In Chennai, SINOPEC K67 (S1000) is listed at ₹70,700/MT, and LG LS100H compounded PVC is available at ₹72,250/MT. 
• MEXICHEM K67 (225P) is priced at ₹70,200/MT, while ZULON JL1000 and HYGAIN HS1000R are both at ₹70,000/MT in Bhiwandi. 
• Other notable prices include LG K67 (LS100) at ₹73,200/MT and ASNYL K67 (FJ65R) at ₹70,500/MT.

Supply-Demand Dynamics & Industry Impact

• The imported PVC market in India remained volatile in February, initially continuing its upward trend from January due to rising crude oil prices and strong PVC futures.
• However, by mid-February, prices began fluctuating downward as supply-demand fundamentals failed to provide further support. By the end of the month, the market stabilized, returning to price levels seen at the beginning of February.
• A key factor limiting PVC price growth was the weak performance of the calcium carbide market, restricting the cost-driven strengthening of PVC. 
• On the demand side, the increase in downstream operating rates was moderate, with hard plastics manufacturers resuming production at a slow pace. 
• Inventory pressure remains a concern, with downstream operating rates generally below 50%. While domestic demand struggled, exports provided some support, helping mitigate the effects of insufficient local consumption.

News: Key Market Developments & Industry Updates

• RIL has reduced PVC prices by Rs. 1000/MT with effect from 1st March 2025.
• Fortishchem is planning to shut its Polyvinyl Chloride (PVC) plant for maintenance. The plant is located in Novaky, Slovakia, with a production capacity of 90,000 tons per year.
• Hanwha Solutions is set to shut its Polyvinyl Chloride (PVC) lines on 24th February 2025 for maintenance work. The lines are located in Yeosu, South Korea, with a total production capacity of 480,000 tons per year.
• Braskem has restarted its Polyvinyl Chloride (PVC) unit, which was shut on 18th November 2024. The unit is located in Camacari, Bahia, Brazil, with a production capacity of 250,000 tons per year.
• Hanwha from South Korea has offered its PVC (P1000SB/P1000/P1000F) at US$ 740/MT, CIF Nhava Sheva port, on an LC at sight basis for the March 2025 shipment.

Expert Insights & Future Market Outlook

• It is expected that supply and demand will gradually recover in March, but the market will remain under pressure from high supply levels. Manufacturers are expected to continue operating at high rates, leading to further inventory accumulation. 
• While downstream processors are resuming production, their high existing stock levels mean procurement will remain focused on essential needs. Export demand is likely to improve, but domestic demand recovery may take longer. With potential policy support from the March meeting, PVC prices are expected to maintain a strong and stable trend in the near term.