| PVC: Weekly Report & Future Trend - 2nd Wk,Jan'23. (Dt: 07/01/2023- Posting Cycle : Weekly, Saturday |
feedstock on CIF SEA basis Ethylene monomer assessed Down at $ 855/MT VCM quoted higher at $ 725/MT EDC valued higher at $ 285/Mt China Bazaar : In China, the demand and supply dynamics related to the PVC segment demonstrate an opposing trend. While there was sufficient availability, there was insufficient demand. As a result, traders have lowered their spot prices to around 6,170 Yuan/MT to attract buyers. Taiwanese Major Formosa announced the price of ( High K ),Feb.'23 shipments for global bazaars On CIF China : $ 850/Mt On CIF India : $ 930/Mt SEA:There was an uptick in PVC purchases in SEA after the Taiwan-based FPC raising its offer to SEA by USD 80-90/MT on the back of dwindling availability, and bullish expectations on account of China resuming manufacturing activities. India: Latest Rate Revision : With effect from 5 Jan.'23, Indian Polymer producers have increased their ex-works prices by 2 Rs/Kg. Buying Pulse: The pulse of PVC buying in India has turned weak on account of processors seeing reduced end-product sales. As we have already reported, sellers quoted lower prices to woo customers in sluggish trading atmosphere. The latest price quotations(Ex Bhiwandi, Mumbai): Spot Offers: Quotes of Taiwan origin PVC have slipped below Rs 97-98/Kg. Forward Delivery: Prices of China-make SG 5 were lower at around Rs 90.5-91/Kg +GST. Purchase Opinion: Considering a slew of price regulating factors, such as the progress of the pricing trend towards a stable or firm status, the overall trading atmosphere, and the influence of the expected price regulators, we advise R/M procurement at the company rates. |
| PVC: Weekly Report & Future Trend - 1st Wk,Jan'23. (Dt: 31/12/2022- Posting Cycle : Weekly, Saturday) |
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Key feedstock on CIF SEA basis Ethylene monomer assessed stable at $ 925/MT VCM quoted higher at $ 685/MT EDC valued higher at $ 245/Mt China Bazaar : PVC traders in the major plastic R/M bazaars of China have enough stocks at hand. There were no supply constraints. But, there was no active demand due to the processors keeping their r/m procurement activities away due to the year-ending mood. The spot prices have thus fallen to around 6,120 Yuan/MT. Indian Bazaar: For the Indian bazaar, overseas exporters have quoted higher offers on account of maintaining parity with the global price references, and the encouraging buying ecosystem in the country. Our editorial team has come to know bookings for Chinese SG 5(late Jan'23 or Mid Feb'23 deliveries) were closed at USD 900-910/MT on CIF NS basis. Latest Rate Revision : With effect from 29 Dec’ 22, RIL rolled over their ex-works PVC prices. Buying Pulse: Our weekly bazaar assessment shows that buying was steady. Akin to buyers of other R/M segments, PVC processors also came under the influence of the apprehension of the likelihood of the local producers raising their ex-works prices in the next price revision. Therefore, they engaged themselves in procuring the R/M at the current prices, before any price hikes.Moreover, supply crunch was reported from many cities, due to which premiums have hovers within Rs 10-12/Kg. Delhi Bazaar Snapshots: Suspension Grade: Rs 106-108/Kg (Up) K57: Rs 111-113/Kg (Up) Purchase Opinion: Taking into account the overall bazaar scenario, expected strategies of local producers & other price governing factors, we have come to the conclusion that PVC prices are expected to be INCREASED in range of Rs.2-4/Kg wef 1 Jan.'23.So, we advise R/M procurement at the current price levels. |
| PVC: Weekly Report & Future Trend - 4th Wk,Dec'22. (Dt: 24/12/2022- Posting Cycle : Weekly, Saturday |
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Feed stock on CFR S.E.A. basis : Ethylene monomer assessed Stable at $ 875/MT VCM quoted Stable at $ 605/MT EDC valued Stable at $ 235/Mt Indian Bazaar: On account of buying momentum string, overseas exporters have raised their offers to the Indian bazaar. As per PolymerBazaar research, the next overseas offers-- for February’23 shipments—which are expected to be announced in the first week of January 2023, are likely to get an increment over and above that of Jan 23. Latest Price Revisions Effective from 22 Dec 2022, RIL have kept PVC ex-works prices flat. However, the company’s act of rolling over the prices can be best described by a comma, as it is a temporary measure, and not a full stop to the incremental practice. Buying Pulse: The buying pulse in the major plastic raw material bazaars of the country was active in the week under review. The availability of imported variants vis-à-vis the local makes also triggered a buying spree. Processors thought it wise to purchase the available material before availability tightness surfaces. The aggressive buying has also enticed open bazaar sellers to charge premiums of Rs 7-10/Kg taking the open bazaar prices to around Rs 97-98/Kg (Suspension), and Rs 106/Kg ( K57). Purchase Opinion: Looking at the ongoing developments & evaluating the price deciding policy, we conclude that the commodity trend will continue to edge up. So, we advise buying at the current company prices. |
| PVC: Weekly Report & Future Trend - 3rd Wk,Dec'22. (Dt: 17/12/2022- Posting Cycle : Weekly, Saturday |
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Feed stock on CFR S.E.A. basis : Ethylene monomer assessed lower at $ 885/MT VCM quoted Stable at $ 605/MT EDC valued Stable at $ 235/Mt China: Selling opportunities for PVC domestic sellers and exporters have expanded after the resumption of industrial activities in China subsequent to the govt declaring an end to the pandemic. Our bazaar sources have reported that Chinese PVC exporters have received substantial import orders from SEA bazaars. In the domestic bazaars, PVC spot prices have drifted upwards due to stronger demand and reduced availability. SEA: Exhibiting a similar bazaar trend, SEA buyers have jumped into purchases after the USD 70/MT hike in the PVC offer by a Taiwanese major. Again, a major Thai producer has raised its PVC offer to Malaysia by USD 100/MT for Jan 2023 shipments. Latest Overseas Offers: Improved buying sentiments have catalysed the overseas producers to raise their PVC offers to India. Latest Rate Revision: Prompted by the strengthening demand, Indian producers have successively raised their ex-works prices for the third week. Effective from 15 Dec 2022, RIL raised its prices by Rs 3/Kg. Another Producer, Chemplast Sanmar hiked PVC Paste grade prices by Rs 7/Kg with effect from 17 Dec.'22 Buying Pulse: In spite of purchases rising, the sentiments of processors were a bit low due to their end-products having not picked up satisfactory off-take speed. Again, the tight availability has eased with the local and foreign suppliers releasing fresh supplies to bazaars. Due to the cumulative effects, the premiums have sunk to the Rs 5-8/Kg range. Purchase Opinion : Looking at the current equation & price governing factors, we advise procurement at the current price levels. Processors should remain aware that there are chances of the local producers raising their prices further if the global prices continue to exhibit a rising trend. |
| PVC: Weekly Report & Future Trend - 2nd Wk,Dec'22 (Dt: 10/12/2022- Posting Cycle : Weekly, Saturday) |
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Feed stock on CFR S.E.A. basis : Ethylene monomer assessed Stable at $ 885 /MTVCM quoted Higher at $ 605/MT EDC valued Stable at $ 235/Mt China : There were some activities in the PVC segment of the major plastic raw material bazaars of China. It has been mainly due to the decision of financial institutions in China to allow low interest loans to the stagnant real estate industry. The sentiments among the PVC processors have become optimistic. So, there was an uptick in the buying, and that triggered an upward PVC price movement to around 6,045 Yuan/MT. Offer Status In a sharp reversal of trend, the Taiwan based FPC raised its Jan 2023 shipment PVC offers by USD 80 to 100 /MT. USD 760 FoB USD 840 CIF India, USD 800 CIF China Given the hikes, the offers were higher by USD 90/MT to India, and USD 70/MT to the SEA bazaars. However, the allocations were lesser, which were due to shorter working days, according to FPC. Moreover, it has raised the eyebrows of bazaar participants, regarding it as a hint of further offer hikes in the subsequent announcements. Latest Overseas offers : Formosa Increases Suspension Grade PVC Offer for January 2023 shipments in 3 Digit, to USD 840/MT CIF NS, ringing an alarm bell of the possibility of local producers raising their ex-works prices. Also, the offer stands at USD 880/MT CIF Kolkata. Latest Rate Revision : RIL increased PVC prices by Rs.4/Kg from 8 Dec.'22 Buying Pulse : Panic buying prevailed, eroding the stocks with traders. Due to short supply, traders were not able to replenish their stocks, prompting them to charge premiums of Rs 10-12/Kg. During the recent price falling phase, processors adopted a wait-and-watch policy instead of procuring. As such, their inventories dwindled, necessitating fresh procurements. In the latest turn of bazaar events, processors regained their buying confidence, resulting in the prevailing aggressive buying, also adding fuel to the traders’ premium charging propensity. Purchase Opnion : Looking at the current equation & price governing factors, the commodity trend is heading towards upward direction. If buying continues to be strong, global price will continue to rise & this may invite another round of Price Increment in days ahead.Polymer Procurment is advised at current offer levels or company price. |
| PVC: Weekly Report & Future Trend - 1st Wk,Dec'22. (Dt: 03/12/2022- Posting Cycle : Weekly, Saturday) |
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Feed stock on CFR S.E.A. basis : Ethylene monomer assessed Stable at $ 885 /Mt VCM quoted lower at $ 585/MT EDC valued lower at $ 255/Mt CHINA :In the PVC segment of plastic raw material bazaars in China, two things have worked—the govt policies to revive the industrial growth, and financial institutions deciding to offer loans to the stagnant real estate industry at concessional rates. Due to these new aspects, converters have become hopeful of getting their finished products sold due to the resumption of industrial activity. Driven by an optimism, processors have returned to the plastic raw material bazaars to procure PVC to feed their factories. Resultantly, there was a slight rise in the spot PVC prices in the bazaars. According to the latest information received, the spot price rose to around 6,060 Yuan/MT. India : International offers, this week, traced a marginal upward curve, propelled by strengthening demand. From what we came to know, overseas producers have completely sold out their Dec.'22 shipments & Jan.'23 deals were done at higher prices.The recent overseas offers were announced higher at USD 820-830/MT CIF NS. Latest Rate Revision : With effect from 1 Dec 2022, Indian local producers increased PVC prices by Rs.2/Kg & withdrew the lifting based discount scheme. Custom Exchange Revision : Effective 2 Dec.'22, GoI has slashed the customs exchange rate to 82.00/USD (-0.60). Buying Pulse The buying pulse was energetic, triggering northward movement in the prices. The latest upward price revision added fuel to the purchasing fire as the converters had less inventories, and they jumped into the inventory building process in the prospect of the prices going up further. Open bazaar sellers raised their spot prices to capitalize upon the buying spree. Moreover, the shortage of imported variants in the bazaars is likely to aid in sellers further taking up their spot prices. Purcahse Opinion : Given the indications in place & the other influencing factors, it seems that the commodity will continue upward trend. As per current equations, buying is advised for routine requirements. |
| PVC: Weekly Report & Future Trend - 4th Wk, Nov'22: (Dt: 26/11/2022- Posting Cycle : Weekly, Saturday) |
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Key highlights in feedstock pricing trend on CFR S.E.A basis Ethylene monomer assessed Stable at $ 885 /MT VCM quoted lower at $ 595/MT EDC valued Stable at $ 265/Mt China In China, PVC sellers continued to see a grim demand scenario. At the same time, they underwent the refreshment of an optimistic air blowing all around the bazaars. The air of optimism emanated from the recent stand of the govt to remove bottlenecks to industries, and the banks easing credit facilities. As part of the move, financial institutions have decided to lower the lending rate to make business loans, especially to the ailing real estate industry, cheaper. The low-interest loans mean the real-estate industry, currently under turmoil, getting enough room to resume their construction activities. Once the construction activities take-off, demand for plastic products will strengthen, hence polymer(including PVC) sales will resume to active levels. India :In India, demand has been on improvement note. However, overseas producers have announced their latest PVC offers to India at lower rates. Conforming to our prediction, the Taiwanese PVC major—FPC—quoted its Dec 2022 shipment offer significantly lower by USD 90/MT at USD 740/MT CIF NS. Again, we further forecasted that the lower offer will cast its shadow on the pricing policy of Indian producers. In line with prediction- RIL slashed its price by Rs 1.5/Kg in its Nov 24, 2022 price revision, and withdrew the Price Protection scheme. Notably, all the South Korean producers have sold out their allocations to India. We have also elicited the information that all China-based trading companies have sold Ethylene-based PVC till Jan.”23 end. So, Feb 2023 shipments offers will be announced in Jan 2023. So, there are chances that we may witness price rise in open bazaars. Purchase Opinion :Looking to current scenario & other price governing factors - Polymer Procurement is advised with a close monitoring of commodity trend. |
| PVC: Weekly Report & Future Trend - 3rd Wk,Nov'22. (Dt: 19/11/2022- Posting Cycle : Weekly, Saturday) |
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Key highlights in feedstock pricing trend on CFR S.E.A basis Ethylene monomer assessed Stable at $ 885 /MT VCM quoted Stable at $ 635 /MT EDC valued Stable at $ 265/Mt China Bazaar: Rising availability, poor demand, and sliding prices are the key facets of the PVC bazaars in China. Some processors who booked imports, did so at strikingly lower deals, taking advantages of the producers unable to liquidate their export cargoes elsewhere due to weak demand. As per our discussions with bazaar participants, some import deals were concluded at USD 650-670/MT CIF for around 26,000 MT of USA-origin PVC—Feb 2023 shipment. Also, around 30,000 MT Of Indonesia-origin PVC were booked by Chinese converters at USD 690-700.MT CFR China. India Bazaar: Hopefully, Indian PVC bazaar participants would hear the PVC offer announcement (for Dec 2022 shipment) by the Taiwanese PVC giant—FPC—on Monday. As we have already reported, the PVC behemoth had postponed the announcement to the next week, seemingly to first figure out the bazaar movements better before fixing a price. On the other end of the spectrum, Indian producers seems to have been waiting for the announcement to fix their prices for their revision, using the offer as a guiding yardstick. Readers will recall that we have already predicted the possible value of the offer—at USD 750-760/MT CIF NS, Mumbai. Custom Exchange Rate: Effective 18 Nov.'22, GoI has slashed the customs exchange rate to 82.60/USD (-1.20). Buying Pulse: We have observed the arousal of a thin optimism among traders regarding a possible PVC demand revival in the next few days. And, the underlying reason could be the anticipation of a possible demand revival due to the prices sliding below the expectations. Due to the optimism ( although with a firm basis), the traders have lifted their spot prices by Rs 1-2/Kg in advance to capitalize upon the demand revival, if their apprehension takes effect. Purchase Opinion : Indian producers will react & hopefully offer price cut in consideration of the next expected offer from FPC. Looking at current scenario & expected influence of other price governing factors- procurement is advised for immediate requirement. |
| PVC: Weekly Report & Future Trend - 2nd Wk,Nov'22. (Dt: 12/11/2022- Posting Cycle : Weekly, Saturday) |
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Key highlights in feedstock pricing trend on CFR S.E.A basis Ethylene monomer assessed Stable at $ 885 /MT VCM quoted Stable at $ 635 /MT EDC valued Stable at $ 265/Mt China: PVC demand continues to be weak in the plastic raw material bazaars of China. But, the producers did not curtail production. So, the over-supply conditions have worsened the bottom-lines of the sellers. We have found an interesting twist to the producers’ somewhat strange response to the bazaar conditions. The reason behind the move is the significant rise in caustic soda prices, a by-product of PVC production, that are up by almost 40% since July last. The recent export prices of Caustic Soda have risen to USD 700/MT FoB. And, the import offers hovered at around USD 700/MT CIF—establishing an increase of around USD 190/MT since July 2022. As the higher caustic soda production led to higher chlorine output, the producers have utilized the excessive chlorine in PVC production. The producers have dealt with the losses from PVC production by selling caustic soda. Indian Bazaar: The latest import offers stayed stagnant. And, we expect the most awaited and benchmark offer from Formosa Plastic Corporation, based in Taiwan, for Dec 2022 shipment to be announced the next week( *Mostly on Coming Tuesday-15 Nov.’22 ) Given what is going on in the bazaars, we expect the Taiwanese behemoth to continue its price reversal policy, and announce the offer lower by USD 60-70/MT—within the periphery of USD 760-770/MT CIF NS. Latest Price Revision: Once again, Indian producers revised their prices downward—the second time in a row in this month—due to the absence of active purchases in the bazaars. On Nov 10, 2022, RIL decreased their PVC prices by Rs 3/Kg (approx. ( USD 37/MT). And, the company did not stop there. RIL also has offered an offtake-based discount scheme of Rs 1.5-3/Kg for Nov. 2022, apparently to add vigour to the buying tendency. Buying Pulse: In terms of the results of the buying-tendency-boosting measures of the producers, they achieved nothing concrete up to the time of filing this report. Contrary to their expectation, the buyer community has found themselves in confusing states. And, they avoided extra purchases to insulate themselves from the onslaughts of the unusual producers’ initiatives. Purchase Opinion: Given the current bazaar situation and the price controlling factors, we advise buying for immediate requirements. |
| PVC: Weekly Report & Future Trend - 1st Wk,Nov'22. (Dt: 05/11/2022- Posting Cycle : Weekly, Saturday) |
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Ethylene monomer assessed higher at $ 885 /MT VCM quoted lower at $ 635 /MT EDC valued lower at $ 265/Mt China: In the absence of demand drivers, the PVC bazaars in China stayed sluggish. And, the spot prices stayed at around 5,910 Yuan/MT in the major open bazaars. Despite the muted demand, there seems no possibility of producers lowering their PVC production because they have found a new incentive to produce more—rise in Caustic Soda prices. According to our assessment, the prices of Caustic Soda, a by-product of PVC production, are up by almost 40% since July last. The export prices of Caustic Soda stood at USD 700/MT FoB of late. And, the import prices were at around USD 700/MT CIF. Roughly, there has been an increase of around USD 190/MT since July 2022. Examining the economics of higher Caustic Soda production, we find that the production also leads to higher Chlorine output. So, the producers should put the resultant chlorine to use. Therefore, the producers have maintained continuity of PVC production (Chlorine is a vital input).In this way, PVC producers have offset the losses arising out of PVC production Indian Bazaar: There was no change in the import offer values from those in the previous week. Latest Rate Revision: Indian producers slashed their PVC prices by Rs 4/Kg (Approx USD 49/MT), effective from 1 Nov 2022. In addition, RIL also has offered an offtake-based discount scheme of Rs 1.5-3/Kg for Nov. 2022, apparently to add vigour to the buying tendency. Currency Impact : WEF 4 Nov.'22 - GoI has reduced the customs exchange rate to 83.80/ USD (-0.10). Buying Pulse: The actual impacts of the producers’ demand arousal attempts were just contrary to their intents—the bazaar continued to stay dull. The back-to-back price cuts and lifting-based discount schemes have actually ignited a fear tone among all the bazaar participants—traders, stockists and converters. So, they have become extra-cautious in their raw material procurements. Given the current state-of-affairs, we say that the bazaars have returned to the COVID days. Purchase Opinion: Given the current bazaar situation and the price controlling factors, we advise buying for immediate requirements only. If demand dynamics remain dull - local producers may be forced to announce Price Protection in order to boost buying confidence. |
| PVC - Weekly Report & Future Trend. Last Week October 2022. (Dt: 29/10/2022- Posting Cycle : Weekly, Saturday) |
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China : The muted demand conditions for PVC continues in Chinese bazaars. In a few days, some PVC plants that were shut down for maintainece are expected to resume.In that case, the availability will increase further in the absence of stronger demand, triggering further price falls. At the DCE, PVC futures for Jan 23 has fallen to RMB 5631/MT. India The latest PVC overseas offers have stayed stable. And that also prompted Indian producers to keep their prices unmoved. To add vigour to the buying tendency, RIL has offered a offtake based discount scheme of Rs 2-4/Kg for Oct 2022. Currency Impact :The record weakening of the INR against the USD has prompted the Gol to hike the customs exchange rate to 83.90/ USD (+1.45) effective from 21 Oct 2022. The hike in the customs exchange rate is likely to impact polymer prices on India as landing costs of imports will be higher. Producers structure-their pricing strategies on the basis of import price parity. Buying Pulse Indian Processors & traders are expected to be back to their desks ( full fledged) from Monday after the Diwali celebrations. Given the hearsay, a slight improvement in demand is expected after the trading resumes. Purchase Opinion Given the current bazaar situation and the price controlling factors, we advise buying for immediate requirements only. Also, readers should note that the offtake based discount scheme is most likely to be discontinued from 1 Nov 2022. We will issue the price prediction in due course of time. |
| PVC: Weekly Report & Future Trend - 4th Wk,Oct'22. (Dt: 22/10/2022- Posting Cycle : Weekly, Saturday) |
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key highlights in feed stock On CFR S.E.A basis 🔹 Ethylene monomer assessed lower at $ 8T5 /Mt 🔹 VCM quoted lower at $ 735 /Mt 🔹 EDC valued stable at $ 320/Mt ⏺️ China Bazaar :PVC prices in the major Chinese plastic raw material bazaars have stayed at lows due to the absence of demand in abundant availability conditions. In what could be regarded as bad news for traders, some PVC plants that were shut down for maintenance are expected to resume soon, and that would mean more availability in weak demand conditions. -At DCE future for January'23. PVC has touched RMB 5870/Mt.We have also spoken to one of the reputed trader at China-he said that the spot PVC prices have hit historical lows. And, when asked about the price he was willing to offer the raw material, he replied USD 790 MT FOB. ⏺️ Global PVC trend : As predicted & informed earlier -Formosa Plastic corp. Taiwan has came with fresh notations for November 22 shipments, which reveals marginal price cuts in comparison with their previous offer for October 2022. Here are some regional notations. 🔹 On FOB Taiwan basis offers quoted lower by US$ 50 at 730 🔹 FOR CIF China & south east asia : Down by US$ 50 at 780 🔹 While for CIF Nhavaseva ,Mundra & Chennai- India offers of S 65 D assessed lower by US$ 70 at 830 ⏺️ Indian Bazaar: In line with marginal reversal at Global price references -wef 19 Oct.”22 RIL also chose to offer price cut of Rs.3/Kg ( Approx. 37 US $/Mt ) Also, Indian producers are now constrained to lower their prices due to the offer price decrements, reversal of global price references, and prevalence of weak demand conditions.Here we will like to remind you that in order to inject buying propensity RIL has also announced offtkae based discount scheme in range of Rs,2-4/Kg for October 22. ( Refer Scheme credentials ). ⏺️ Open Bazaar- The basic price Ex Mundra ( Rs/Kg +GST) 🔹Low K value ( 57 ) imported make is being traded at Rs.80-81/Kg, while 🔹High K value ( 67 ), China SG5 is being offered at Rs,76-77/Kg ⏺️ Purchase Opinion : Given the demand and supply situations, and the price governing factors, we advise buyers to purchase the raw material for immediate requirements only. key highlights in feed stock On CFR S.E.A basis 🔹 Ethylene monomer assessed lower at $ 8T5 /Mt 🔹 VCM quoted lower at $ 735 /Mt 🔹 EDC valued stable at $ 320/Mt ⏺️ China Bazaar :PVC prices in the major Chinese plastic raw material bazaars have stayed at lows due to the absence of demand in abundant availability conditions. In what could be regarded as bad news for traders, some PVC plants that were shut down for maintenance are expected to resume soon, and that would mean more availability in weak demand conditions. -At DCE future for January'23. PVC has touched RMB 5870/Mt.We have also spoken to one of the reputed trader at China-he said that the spot PVC prices have hit historical lows. And, when asked about the price he was willing to offer the raw material, he replied USD 790 MT FOB. ⏺️ Global PVC trend : As predicted & informed earlier -Formosa Plastic corp. Taiwan has came with fresh notations for November 22 shipments, which reveals marginal price cuts in comparison with their previous offer for October 2022. Here are some regional notations. 🔹 On FOB Taiwan basis offers quoted lower by US$ 50 at 730 🔹 FOR CIF China & south east asia : Down by US$ 50 at 780 🔹 While for CIF Nhavaseva ,Mundra & Chennai- India offers of S 65 D assessed lower by US$ 70 at 830 ⏺️ Indian Bazaar: In line with marginal reversal at Global price references -wef 19 Oct.”22 RIL also chose to offer price cut of Rs.3/Kg ( Approx. 37 US $/Mt ) Also, Indian producers are now constrained to lower their prices due to the offer price decrements, reversal of global price references, and prevalence of weak demand conditions.Here we will like to remind you that in order to inject buying propensity RIL has also announced offtkae based discount scheme in range of Rs,2-4/Kg for October 22. ( Refer Scheme credentials ). ⏺️ Open Bazaar- The basic price Ex Mundra ( Rs/Kg +GST) 🔹Low K value ( 57 ) imported make is being traded at Rs.80-81/Kg, while 🔹High K value ( 67 ), China SG5 is being offered at Rs,76-77/Kg ⏺️ Purchase Opinion : Given the demand and supply situations, and the price governing factors, we advise buyers to purchase the raw material for immediate requirements only. |
| PVC: Weekly Report & Future Trend - 3rd Wk,Oct'22. (Dt: 15/10/2022- Posting Cycle : Weekly, Saturday) |
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Ethylene Monomer ($/Mt) SEA - 885 FOB (Stable ) VCM : 740 CFR ( Stable ) EDC : 330 CFR ( Down ) China: The recent anti-COVID19 spread measures have acted as deterrents to some PVC plants in China by bringing challenges to receive or send materials. So, the producers have found difficulty in supplying their produce to bazaars. Coming to the Chinese PVC bazaars, there was nothing new. The situation has remained as it was during the preceding weeks. Abundant availability, and muted demand continue to prevail. We also suspect the occurrence of supply disruption and operating rate cuts are likely to affect the availability in the region, given the arousal of the recent bazaar indications. SEA : Recently, the expectation of an imminent price fall engulfed the minds of SEA bazaar participants due to an unexpected USD 60/MT price cut by an Indonesian producer. India: Buying has become dull due to converters waiting for the prices to settle at the lowest levels. Again, they have lowered their raw material purchases as they found attractive offers every now and then. To trigger buying tendency, RIL has announced a lifting-based discount scheme for Oct.'22. At PB, we have assumed, based on the overall demand and supply climate, that the Taiwanese major, Formosa, may announce their next offer for Nov.22 shipments by next week ( On 18 Oct.'22) - with a possible decrement in the range of USD 40-60/MT. ( Depends upon China's development & global sentiments ). On the realistic side, latent demand is in the bazaars, and that is likely to continue up to the Diwali festival. Purchase Opinion: Given the demand and supply situations, and the price governing factors, we advise buyers to purchase the raw material for immediate requirements only. |
| PVC: Weekly Report & Future Trend - 2nd Wk,Oct'22. (Dt: 8/10/2022- Posting Cycle : Weekly, Saturday) |
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Energy Forecast: Goldman Sachs has raised its oil price forecast for this year and 2023, as the U.S. bank expects the 2 MNBPD output cut agreed by OPEC+ producers to be 'very bullish' for prices going forward. OPEC+ agreed to its deepest cuts to production since the 2020 COVID pandemic at a meeting in Vienna on Wednesday. Goldman Sachs raised its 2022 Brent price forecast to $104/bbl from $99/bbl and 2023 forecast to $110 per barrel from $108 per barrel. Such a large OPEC+ effective cut will likely warrant another response from the U.S. administration and even a coordinated International Energy Agency. China: PP sellers have remained hopeful of seeing a strong demand after the bazaar takes off post the Golden Week holidays. SEA : An unexpected USD 60/MT price decrement by an Indonesian producer has set the tone for the price trend in the near future. Apparently, the prices are expected to fall . In the light of the current bazaar situation, we can see that Formosa is expected to announce its PVC offer for Nov 22 by the second week of Oct 2022 with a price cut. However, we believe that it is too early to make a concrete prediction. The currency depreciation and economic uncertainties have become major trend drivers. Currency Impact: The record depreciation of the INR against the USD has emerged as a major cause of concern in polymer pricing matters. As we have reported about the possibility of a significant rise in the Customs Exchange Rate in our earlier reports, the GoI has raised the rate to an all-time high, effective from 7 Oct 2022. Accordingly, importers must shell out INR 82.45(+2.05) for every USD. India: Due to processors getting attractive offers almost every other day, they have adopted the need-based buying policy, and waiting for the prices to settle at the lowest levels. Once that happens, they will start building their raw material inventories. Purchase Opinion: Given the demand and supply situations, and the price governing factors, we advise buyers to purchase the raw material for immediate requirements only. That is why moderate demand has prevailed in the bazaars, but purchases will continue up to the Diwali festival. |
| PVC: Weekly Report & Future Trend - 1st Wk,Oct'22. (Dt: 1/10/2022- Posting Cycle : Weekly, Saturday) |
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China: There is nothing new in the PVC bazaars of China. Weak demand conditions have persisted. We have already broadcasted our assessments of the PVC bazaar conditions in China that are responsible for the current state of demand affairs. Constrained by weak demand condition, the spot PVC prices have touched record lows of around 6230 Yuan / MT. Asian Offers in Red Signal: Taiwanese PVC major, Formosa Plastic Corp., is expected to announce its next offer for November'22 by the 2nd week of Oct.22. In our assessment, we have found that the combined effects of --poor demand & falling global price reference – the next offer is likely to undergo a price cut of USD 40-60/MT. So, the offer is likely to be quoted in range of USD 840-850/MT CIF NS Considering the current scenario - For now- offers from Japanese, Korean, Chinese, Thai & other PVC makers will follow the same story of a price reduction India : Latest overseas offers for Indian ports have witnessed a softer trend & the offers were assessed lower from previous week. Currency Story : Currency Depreciation: Interestingly, the currency issue has come to the forefront among all price regulating factors. The significant depreciation of the INR against the USD has spread it impact across the plastic R/M bazaars of the country. Financial experts have already warned that the INR may touch 82.5 -83 per USD in the near future .The stronger USD means that the Indian Customs Department will be forced to revise the customs exchange rate upwards in due course of time. And the implications are clear—the landed costs of imports will increase Buying Pulse: We have already said that PVC demand will remain strong at least up to Diwali. But, that has not been reflected in the country’s bazaars. As converters have found attractive offers every next day, they bought on need-basis. And, they are also waiting for the prices to settle at the lowest levels. Then, they will start building their raw material inventories. If dull demand continues to prevail, Indian PVC makers may re-introduce lifting-based discount scheme for Oct.'22. Purchase Opinion: Given the demand and supply situations, and the price governing factors, we advise buyers to purchase the raw material for immediate requirements only. |
| PVC: Weekly Report & Future Trend - 4th Wk,Sep'22. (Dt: 24/09/2022- Posting Cycle : Weekly, Saturday) |
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China Golden Week Impact: Amid uncertainty, there was a silver lining too. Due to the traditional practice of inventory building in the days preceding the Golden Holidays (1-7Oct 2022), the demand might increase in the coming days. Asian Offers : The demand dynamics in the Indian bazaar have fed fuel to the SEA bazaars. Due to the presence of latent demand in the Indian bazaar, the overall sentiments have turned optimistic in the region. Again, Indian buyers have become choosy in the pricing matters—they did not entertain the exporters anything beyond USD 780-790/MT CIF, citing unfavourable economic forecasts. India : Latest overseas offers for Indian ports witnessed stability at current levels. And the improving scenario has prompted RIL to roll over PVC prices—to be effective from 22 Sept.22. Currency Story : In a major development, the GoI has initiated a Safeguard (Quantitative Restrictions) investigation probe concerning imports of PVC - Suspension Resins with Residual VCM above 2 PPM. We have already posted the original notification, dated 16 Sept.22 in PDF format which is self-explanatory. Buying Pulse: Need based buying was observed in the Indian bazaars. As processors encountered more attractive offer every next day, they adopted a cautious buying approach (for the obvious reason). Buyers have been waiting for the prices to hit the lowest levels. Once that happens, they will start building up their raw material inventories. RIL has tried to play a counter game by offering lifting-based discount schemes for Oct.22 offtake. Again, readers will be wrong if they interpret the need-based buying approach as an indicator of demand weakening. As we have mentioned in our earlier reports, the demand will remain strong up to the Diwali festival. In view of this, buying is expected to remain continuous( although need-based), and the likelihood of the buying strengthening in the coming days also cannot be ruled out. Purchase Opinion: Given the demand and supply situations, and the price governing factors, we advise buyers to purchase the raw material for immediate requirements. [ Please note : At PB, We are pleased to cordially invite the nomination of interested importers, willing to meet Formosa Plastic,Taiwan authorities & import PVC, EVA, ABS, other polymers, compounds, and quality machines from Taiwan, through our next delegation for Taipei Plast'22,( 27 Sept.22- 1 Oct.22 ) ] |
| PVC: Weekly Report & Future Trend - 3rd Wk,Sep'22 (Dt: 17/09/2022- Posting Cycle : Weekly, Saturday) |
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Key CFR SEA Pricing Highlights EDC Prices: Down at 330 $/MT. VCM Prices: Up at 745 $/MT. Ethylene Prices: Stable at 1005 $/MT. Europe : The monthly Ethylene contract price for Sept’22 in Europe has declined by Euro 120/MT to Euro 1,305/t FD North Western Europe. Given the air blowing around, European PVC producers are likely to implement a drop of around Euro 60/MT for PVC as a result of Ethylene price decrement. However, there were no changes in the spot PVC prices in Europe up to the time of preparing this report. PVC demand is expected to gain steam in the next few days. China :Weak demand conditions continued. There was a new air of uncertainty in the Chinese plastic raw material bazaars regarding the possible further increase in the US interest rates. The majority of the bazaar participants are under the belief that until and unless the govt does not formulate any effective policy, PVC demand will remain down. According to a Chinese trader, PVC prices in most of the bazaars stooped to around 6510 Yuan / MT. China Golden Week : Demand is expected to gain steam in the succeeding days due to the traditional practice of Chinese converters building their inventories before going on leave to celebrate the National Holidays, slated to start from 1 Oct’22, and extend to 7 Oct’22. Asian Offers : Taiwan-based PVC giant—Formosa—has announced their latest offers to the key Asian bazaars for Oct’22 shipments. Notably, the weak demand conditions were revealed in the offers, which were lower by three digits. CIF China : 830 USD/MT CIF NS- India :900 USD/MT CIF SEA : 820 USD/MT FOB Taiwan: 780 /MT India : Latest overseas offers for Indian ports witnessed acute downward pressure And, that has forced Indian Polymer producers RIL to slash Price by Rs.4/Kg with effect from 14 Sept.22. In a major development, the GoI has initiated a Safeguard (Quantitative Restrictions) investigation probe concerning imports of PVC - Suspension Resins with Residual VCM above 2 PPM. We have already posted the original notification, dated 16 Sept.22 in PDF format which is self-explanatory. The RIL price decrement brought forth the resumption of the need-based buying policy among converters. Due to the possibility of further price falls, processors have halted their raw material building process, waiting for the prices to hit the lowest possible levels. RIL has tried to prudently deal with the situation by offering lifting-based discount schemes for Oct.22 offtake. Delhi Open Bazaar ( Rs/Kg+GST) High K Value - K 67: Rs.89-90 SG 5 -China : Rs. 84-85 Low K Value K 57: Rs.92-94 Buying Pulse: Readers should not interpret the need-based buying approach as an indicator of demand weakening. As we have mentioned in our earlier reports, the demand will remain strong up to the Diwali festival. In view of this, buying is expected to remain continuous ( although need-based). Purchase Opinion: Given the demand and supply situations, and the price governing factors, we advise buyers to purchase the raw material for immediate requirements. [ Please note : At PB, We are pleased to cordially invite the nomination of interested importers, willing to meet Formosa Plastic,Taiwan authorities & import PVC, EVA, ABS, other polymers, compounds, and quality machines from Taiwan, through our next delegation for Taipei Plast'22,( 27 Sept.22- 1 Oct.22 ) ] |
| PVC: Weekly Report & Future Trend - 2nd Wk,Sep'22. (Dt: 10/09/2022- Posting Cycle : Weekly, Saturday) |
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Key CFR SEA Pricing Highlights EDC Prices: Stable at 335 $/Mt. VCM Prices: Up by 745 $/Mt. Ethylene Prices Stanle at 1005 $/Mt. Europe : The monthly Ethylene contract price for Sept’22 in Europe has declined by Euro 120/MT to Euro 1,305/t FD North Western Europe. Given the air blowing around, European PVC producers are likely to implement a drop of around Euro 60/MT for PVC as a result of Ethylene price decrement. However, there were no changes in the spot PVC prices in Europe up to the time of preparing this report.PVC demand is expected to gain steam in the next few days. China :In China, Bazaar participants in China are of the opinion that good policies are required to invigorate the demand for PVC. There was no improvement in demand. But the supply continues to increase. As such, the prices stayed at lows. According to a source, the prices were at around 6,450 Yuan/MT. Again, the demand revival would hit another roadblock due to the lessening of industrial activity. The Chinese govt has decided to pursue its Zero-COVID policies to check its outbreak up to the National Congress of the Communist Party meeting on 16 October 2022. India : The apprehension of price slides are playing in the minds of converters. And, that has led them to temporarily halt their raw material inventory building process. Instead, they bought PVC as per their immediate needs. On the overseas offer pricing side, the latest offers stayed stable at USD 1000/Mt CIF NS, Mumbai. For Oct.' 22 deliveries - Prompted by the reversal of the global price reference, Indian customers are expecting Formosa, the Taiwanese PVC giant, to offer the raw material at USD 40-50/MT lower prices than Sept’22. ( Most probalbly by Next week ) Buying Pulse: Due to the upcoming festive season, the demand is strong these days. But, buying has moderated due to the expectation of further price down slides. Readers will recall that the demand will stay strong up to Diwali, as we have mentioned in our earlier reports. Purchase Opinion : Given the demand and supply situations, and the price governing factors, we advise buyers to purchase the raw material for immediate requirements. There are chances of the next overseas offers for Indian ports subjected to downward pressure. And, that may force Indian Polymer producers to slash their prices for local bazaars. ( Most likely to be slashed by next week ). [ Please note : At PB, We are pleased to cordially invite the nomination of interested importers, willing to meet Formosa Plastic,Taiwan authorities & import PVC, EVA, ABS, other polymers, compounds, and quality machines from Taiwan, through our next delegation for Taipei Plast'22,( 27 Sept.22- 1 Oct.22 ) ] |
| PVC: Weekly Report & Future Trend - 1st Wk Sep'22. (Dt: 03/09/2022- Posting Cycle : Weekly, Saturday) |
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Key CFR SEA Pricing Highlights EDC prices assessed stable at USD 325/MT VCM prices assessed stable at USD 745/MT Ethylene prices assessed higher at USD 985/MT China :In China, PVC demand is still weak due lesser purchases in domestic bazaars and lower exports. We have already published multiple times about the impact of the retardation of the real-estate sector on the demand pattern. The prices have remained at lows due to the weak demand. According to our sources, PVC was sold in the major plastic raw material bazaars in that country at around 6510 Yuan/MT. Indonesia : In Indonesia, PVC demand is expected to improve due to the start of the construction of the new capital in Nusantara. The development is likely to trigger PVC demand as the usage of the end-products, such as pipes, fittings, etc. will rise. Based on an optimistic outlook, a domestic PVC producer has rolled over its Sept.’22 offers to catalyze buying tendencies. India : Latest offers assessed stable at US$ 1000/Mt for CIF NS, Mumbai. Indian Custom dept. has revised US$ -INR exchange rate wef 02/09/2022 For Import of Goods 1$ = Rs.80.45 (-0.05) For Export of Goods 1 $ = Rs.78.70 (-0.10) Buying Pulse: On the demand side, the PVC bazaars are seeing active purchases. And, the sellers took advantage of the stronger demand to lift their spot prices by nominal amounts. As we have mentioned in our earlier reports, the active off-take of end-products has forced converters to purchase more raw material to feed their factories operating at higher rates. Purchase Opinion : Given the demand and supply situations, and the price governing factors, we advise buyers to purchase the raw material at the current prices. However, they should not fail to assess the price governing factors before stepping in to build raw material inventory at current levels. [ Please note : At PB, We are pleased to cordially invite the nomination of interested importers, willing to meet Formosa Plastic,Taiwan authorities & import PVC, EVA, ABS, other polymers, compounds, and quality machines from Taiwan, through our next delegation for Taipei Plast'22,( 27 Sept.22- 1 Oct.22 ) ] |
| PVC: Weekly Report & Future Trend - Last Wk,Aug'22. (Dt: 27/08/2022- Posting Cycle : Weekly, Saturday) |
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Key CFR SEA Pricing Highlights EDC prices decline by USD 10-15/MT to USD 325/MT VCM prices assessed stable at USD 735-745/MT Ethylene prices stay stable at USD 905/MT China Bazaar :There was no change in PVC bazaar dynamics in China from that in the previous week. The arousal of weak demand due to —stagnancy of the real estate sector, shrinking exports, and lesser procurement by processors—has negated any possibility of northwards price journey in the near term. The spot prices stayed at around 6650 Yuan/MT. India Bazaar :Latest Overseas Offers-- For September'22 Shipment, the Taiwanese Suspension grade PVC maker has quoted its offer at USD 1020/MT CIF. Recently, Indian PVC makers approached the GoI to request for a ban on PVC imports from China. They also filed a petition to the government to impose quantitative restrictions on imports of Suspension Grade PVC from China for two years to safeguard the interest of the local producers. Moreover, they also apprised the government about the inflow of low-quality PVC from China. In response, the govt has hinted an inquiry against the alleged dumping. Notably, the poor quality PVC is also alleged to cause cancer in people. Latest Indian Rate Revision: With effect from 25 Aug 2022 - RIL choose to roll over PVC Prices. Buying Pulse: The annual trend of demand upsurge due to the arrival of the Diwali festival is showing in the PVC bazaars of the country. Sellers in many bazaar pockets have experienced active sales due the demand improvement. Traders and importers have sold their inventories with a nominal price increment, capitalizing on the active purchases. Given the conditions ahead, the demand is expected to strengthen in the days ahead due to aggressive off-take of finished products. Purchase Opinion :Assessing the prevailing bazaar conditions, and other price governing factors, we found that buying is a prudent idea. So, we advise buyers to purchase the raw material at the current prices. At the same time, they need to keep their eyes on price governing factors before stepping in to build raw material inventory at current levels. [ Please note : At PB, We are pleased to cordially invite the nomination of interested importers, willing to meet Formosa Plastic,Taiwan authorities & import PVC, EVA, ABS, other polymers, compounds, and quality machines from Taiwan, through our next delegation for Taipei Plast'22,( 27 Sept.22- 1 Oct.22 ) ] |
| PVC: Weekly Report & Future Trend - 4th Wk,Aug'22. (Dt: 20/08/2022- Posting Cycle : Weekly, Saturday) |
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EDC prices declined by USD 15-20/MT to USD 325-335/MT. VCM prices slipped by USD 10/MT to USD 735-745/MT. Ethylene prices stayed stable at USD 925/MT China Bazaar : PVC demand stayed weak in Chinese plastic raw material bazaars. A slew of factors—stagnancy of the real estate sector, shrinking exports, and lesser procurement by processors—have contributed to the dull demand conditions. Moreover, the conditions rule out any upward price movements. The prevailing PVC prices in the major open bazaars in China are at around 6650 Yuan/MT. India Bazaar : Latest Overseas Offers were assessed lower as compared with previous week. In a major move , Indian PVC makers approached the Indian Gov. to ban PVC imports from China Major PVC producers in India has filled a petition to the government to impose quantitative restrictions on imports of PVC suspension resins from China for two years, to safeguard the interests of local players. Stating that there had been an unprecedented increase in imports of PVC suspension resins by more than 300 % in 2021-22 ( Over imports in FY 2021) Custom Exchange Revision: With effect from 19th Aug' 2022, the Indian Customs Department has raised the customs exchange rate for imports by 0.25 points to INR 80.50/USD. And, the department has implemented same increment to exports, to INR 78.80/USD. Latest Indian Rate Revision: With effect from 18 Aug 2022 - RIL offered a price cut of Rs.2.5/Kg. And, the price protection has been withdrawn. We interpret the price decrement as a sequel to the development of the dull sentiments in SEA bazaars, forcing the local producers to announce price reductions for the second time in row during Aug.'22. Buying Pulse: The buyers are on the back foot, and exercising extra carefulness in their raw material procurement strategies. And, that is due to the absence of any price protection scheme in the falling price environment. As we came to know, processors are shifting their purchases from domestic to imported variants to clinch a better deal. On account to the recent holiday lull, the demand become weaker, putting importers, stockiest, and traders under intense selling pressure. However, the upcoming festive season until Diwali is expected to bring demand back to bazaars. Purchase Opinion :Assessing the prevailing bazaar conditions, and other price governing factors, we advise buyers to purchase the raw material for immediate requirements only. |
| PVC: Weekly Report & Future Trend - 3rd Wk,Aug'22. (Dt: 13/08/2022- Posting Cycle : Weekly, Saturday) |
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Global: Latest offer of Taiwanese Major Formosa Plastic corp. for September’22 deliveries. CFR China: US$870/ton ( -50 ) FOB Taiwan :US$820/ton ( -50) CFR India : US$1,010/ton ( -80 ) US$ 10/Mt discount for buyer of 500 Mt or higher. Turkish PVC Bazaar in a Laggard State on Falling Prices In a discussion with a PVC converter in Turkey, we learnt that a pale atmosphere has been prevailing in that country’s PVC bazaars due to the buyers watching the falling prices, and waiting the prices to fall to the lowest levels. As a result, there has been no improvement in the demand even after the Eid holidays. China Bazaar - In China, PVC stocks with sellers continue to remain at significantly high levels. In the absence of adequate demand, there has been no significant reduction in the stocks. So, sellers are in a tremendous pressure to dispose of their stocks. On the other hand, buyers have lowered their factory operating rates, and adopted a need-based buying policy. In addition, the stagnancy in the construction sector has restricted any significant outflow of PVC sales. Therefore, there is no prospect of any demand revival in the near future, and the prices will remain at lows. India Bazaar The development of the dull sentiments in SEA bazaars has forced the Taiwanese PVC major- Formosa- to revise its offer downwards. Latest Indian Rate Revision: With effect from 13 Aug 2022 - RIL offered a price cut of Rs.2/Kg. And, the price reduction is also backed by Price Protection till the month end as it has become need of hour. Buying pulse: The nominal uptick in PVC demand in the preceding weeks, however, was short lived, and the demand dynamics have returned to square one. The falling prices have pushed processors to the back foot, waiting and watching the price movements, lowering purchases. As such, the demand has turned dull. Polymer importers, stockiest are reeling under selling pressure, trying to woo buyers with attractive discounts. Purchase Opinion : The current bazaars dynamics indicate uncertainties in the coming days. We have assessed the current state of affairs in the bazaars, and taken other price deciding factors in calculation, and come up with the advice for buyers to purchase the raw material for immediate requirements only. |
| PVC: Weekly Report & Future Trend - 2nd Wk,Aug.' 22. (Dt: 06/08/2022- Posting Cycle : Weekly, Saturday) |
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Click to Download PDF with historical Data : Global Bazaar: The stable trend in the global PVC bazaars extended this week. And, the price quotations for CFR SEA was at USD 960/MT, and CFR India was at USD 1,000/MT. China Bazaar: We came across slight downward drifts in prices in China, and the prevalence of a moderate demand. Again, we felt the indications of supply to increase in the coming days. In an interesting development, the slippages of the ocean freight rates can pull the polymer prices further down in the coming days. Also, we expect the spot prices to stay range bound in the near term. India Bazaar: Bearish sentiments have engulfed the Indian PVC bazaars. Buyers were not willing to purchase in excess of their daily needs due the sharp decline in the prices. They are waiting and watching for the prices to settle at a certain rates. We spoke to a few processors, and we came to know that they have been assessing the global bazaar movements to take a stock of the global situation as that can serve vital clues about the future bazaar movements in India. [ Please note : At PB, We are pleased to cordially invite the nomination of interested importers, willing to meet Formosa Plastic,Taiwan authorities & import PVC, EVA, ABS, other polymers, compounds, and quality machines from Taiwan, through our next delegation for Taipei Plast'22,( 27 Sept.22- 1 Oct.22 ) ] PVC deals concluded in recent past -Ex Bhiwandi ( Rs/Kg + GST) High K SG 5 : Rs. 91-92 Low K : Rs. 104-105 Purchase Opinion: In view of the uncertainty, we advise buyers to purchase for immediate requirements. But, they should not fail to assess all price governing factors closely before making critical decisions of polymer procurement. |
| PVC: Weekly Report & Price Prediction (Future Trend) - 1st Wk,Aug'22. (Dt: 30/07/2022- Posting Cycle : Weekly, Saturday) |
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Global Bazaar: In the Asian region, PVC prices exhibited a stable trend this week. According to the inputs we received, the price quotations for CFR China were at USD 860/MT, CFR SEA was at USD 900/MT, and CFR India was at USD 1,000/MT. China Bazaar: In China, the main PVC consumption hub in Asia, an encouraging airflow has invigorated the bazaar participants. Processors have realized the need to buy fresh raw material due to the depletion of their inventories. As such, sellers saw the resumption of selling after a period of muted demand. Due to the resumption of purchases, PVC futures ( Sept.'22) at the DCE rose on Friday. While the opening price was 6565 Yuan/MT, the closing price was at 6578 Yuan/MT. In the open bazaars of China, the gradually strengthening demand pushed the spot prices upwards to around 6578 Yuan/MT. India Bazaar: : In Indian PVC bazaars, sellers saw a reflection of the latest trend in China. Buying has resumed as PVC processors have restarted their raw material procurement as their inventories are exhausted. But, note that the demand has not improved to a significant extent. The demand recovery has also prompted Chinese producers to revise their offers of the SG5 variants of different make upward by USD 80-100/MT or higher. [ Please note : At PB, We are pleased to cordially invite the nomination of interested importers, willing to meet Formosa Plastic,Taiwan authorities & import PVC, EVA, ABS, other polymers, compounds, and quality machines from Taiwan, through our next delegation for Taipei Plast'22,( 27 Sept.22- 1 Oct.22 ) ] PVC deals concluded in recent past -Ex Mundra ( Rs/Kg + GST) High K SG 5 : Rs. 97-98 Low K : Rs. 107-108 Purchase Opinion: Looking at the current scenario & other relevant factors, buying is suggested. Prediction: After analyzing the supply and demand scenario, PB Analysts expect the local producers to come up with the following revision slated for the 1 Aug.22 PVC : May be revised upward by Re.1-3/Kg Kindly Refer Weekly PDF Report for Historical Data 2021-22 with Graphical Presentation. 1.Weekly Feed stock Movement & Historical Data 2.Weekly China PE Spot & Future offers 3. Plant News 4. Overseas offers ( USD/Mt) -Historical Data 5. Open Bazaar Price INR/Kg - Historical Data. 6. VIP Delegations. |
| PVC: Weekly Report & Future Trend - 4th Wk,July'22. (Dt: 23/07/2022- Posting Cycle : Weekly, Saturday) |
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Click to Download PDF with historical Data : Global: A transition from stable to firm trend was observed in the global PVC bazaar landscape. Sellers in Turkey and Europe have started receiving raw material purchase orders after a lull in the recent past. The improvement in the demand is reflected in the PVC futures which increased by USD 55 this week. China: In China, PVC sellers have seen a slight improvement in the purchases after a long-term lull. Many processors have returned to the bazaars to purchase the raw material as their inventories have exhausted, necessitating fresh purchases. The reflection of the demand improvement was seen in the PVC futures on Friday. The Sept 2022 futures have gained CNY 37/MT(USD6/MT) week-on-week to CNY 6,384/MT (USD 958/MT) This week , PVC contract price has exhibited a rising trend. While the opening price was 6,248 Yuan/MT, the closing price was at 6,466 Yuan/MT. During the intervening period, In the open bazaars of China, the spot prices drifted upwards to 6,620 Yuan/MT. India: : The improvement in demand in China happened on Friday last. The demand stayed sluggish during the preceding days. Due to which, a pessimistic sentiment prevailed across the SEA bazaars, including India. Considering the weak demand, international producers quoted their offers to India at lower rates that those for the previous week. For Aug.'22 deliveries, the Taiwanese producer, FPC, has announced its offer at USD 1090/MT CIF Mundra/NS, lower by over USD 230/MT from previous offer for July'22. Following the offer announcement, Indian producers reduced their prices by Rs.8/Kg with effect from 20 July'22. In contrast, DCM Shriram has hiked its price by Rs.3/kg with effect from 21 July'22. On the demand side, buying has improved slightly. And, that improvement is due to processors procuring the raw material on account of the depletion of their raw material inventories. The price increment by DCM Shriram should not be taken lightly. It is a subtle indication of the possibility of demand strengthening in the coming days And, we hope that there is indeed some possibility of the demand improving at least moderately. If that happens, open bazaar prices may get upward momentum from next week & extra attractive offers from sellers may disappear. [ Please note: At PB, We are pleased to cordially invite the nomination of interested importers, willing to meet Formosa Plastic,Taiwan authorities & import PVC, EVA, ABS, other polymers, compounds, and quality machines from Taiwan, through our next delegation for Taipei Plast'22,( 27 Sept.22- 1 Oct.22 ) ] Deals concluded of PvC in recent past -Ex Mundra ( Rs/Kg + GST) High K SG 5 : Rs. 92-93 Low K : Rs. 105-106 Purchase Opinion: Looking at the current scenario & other relevant factors, buying is suggested Kindly Refer Weekly PDF Report for Historical Data 2021-22 with Graphical Presentation. 1.Weekly Feed stock Movement & Historical Data 2.Weekly China PE Spot & Future offers 3. Plant News 4. Overseas offers ( USD/Mt) -Historical Data 5. Open Bazaar Price INR/Kg - Historical Data. 6. VIP Delegations. |
| PVC: Weekly Report & Future Trend - 3rd Wk,July'22. (Dt: 16/07/2022- Posting Cycle : Weekly, Saturday) |
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Global : The wave of escalating inflation and unemployment in the US has eroded all optimistic concerns among global converters as they were seeing the possibility of an economic recession. In addition, there have been fears of the Fed hiking the interest rates once again. So, processors have become cautious in their raw material purchases, weakening the demand in global bazaars. China : In China, the fear of an economic recession has kept buyers away from procuring raw materials in excess of their regular requirements. And, many PVC converters in China have reduced their operating rates, requiring lesser raw material. Therefore, poor demand is visible in the plastic raw material bazaars of that country. Consequently, the spot prices have come down to around 6495 Yuan/MT, and the Sept 2022 futures collapsed to 6195 Yuan/MT. India: Apparently, the impact of the Chinese bazaars has been reflected in the international offers. The recent ones at the Indian ports were quoted lower than those in the previous week. For Aug.'22 deliveries, a South Korean producer announced their offer prices at USD 1050-1060/MT CIF Mundra/NS with LC at sight. Again, the collapse in the Chinese future will also influence the next offers of Taiwanese PVC makers for the August 2022 shipment. We expect that the fresh offers will be announced by next week ( Tuesday i.e 19 July'22 ) and may be lower in the range of +/- USD 1050/Mt. Chaos is prevailing in the Indian PVC bazaars. With effect from 13 July 2022, RIL slashed its price Rs.6/Kg, reflecting the global price movements.Processors are finding it difficult to figure out what to do, as they are caught between the devil and the deep sea. On one side, the prices of the raw material have been falling frequently. And, on the other side, the offtake of the finished products (pipes, fittings & others) has been sluggish. Again, the arrival of the worrisome monsoon season has added to the woes of the converters as demand for PVC end products will wane due to the retardation in the construction industry. Converters have restricted their PVC purchases just to feed their daily factory requirements. And, importers and stockiest are exploring all possible ways to liquidate their ready, and incoming cargoes at the current price levels, and that too with favorable terms to buyers. As a result, buyers are encountering more attractive offers every next day. [ Please note: At PB, We are pleased to cordially invite the nomination of interested importers, willing to meet Formosa Plastic,Taiwan authorities & import PVC, EVA, ABS, other polymers, compounds, and quality machines from Taiwan, through our next delegation for Taipei Plast'22,( 27 Sept.22- 1 Oct.22 ) ] Deals concluded of PvC in recent past -Ex Mundra ( Rs/Kg + GST) High K SG 5 : Rs. 89-90 Low K : Rs. 104-105 Purchase Opinion: Looking at the current scenario & other relevant factors, we advise buyers to examine all price governing factors carefully before stepping into the procurement process. For now, buying is advised for the immediate requirement. Kindly Refer Weekly PDF Report for Historical Data 2021-22 with Graphical Presentation. 1.Weekly Feed stock Movement & Historical Data 2.Weekly China PE Spot & Future offers 3. Plant News 4. Overseas offers ( USD/Mt) -Historical Data 5. Open Bazaar Price INR/Kg - Historical Data. 6. VIP Delegations. |
| PVC: Weekly Report & Future Trend - 2nd Wk,July'22. (Dt: 09/07/2022- Posting Cycle : Weekly, Saturday) |
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Global : The prospect of an imminent economic slowdown has cast its impact on the crude oil price movements, triggering downward traversals. According to a study by the Citi Group, oil prices could sink to around USD 45/barrel by 2023 via a collapse to around USD 65/barrel by 2022 end. In addition, the waning demand for plastic end products due to the possibility of a recession has hit the global polymer price benchmarks, pulling them down. China: Both spot prices and futures showed a falling trend, mirroring the global sentiment. While spot prices slid to around 6850 Yuan/Mt & Sept 2022 futures collapsed to RMB 6725/Mt India The recent international offers at Indian ports were assessed lower compared with those last week. Due to the continuous downfall of futures at China DCE, international producers were compelled to slash their offer prices to around USD 1120-1130/MT CFR Mundra. The drastic collapse of the futures will surely influence the next offers of Taiwanese & South Korean PVC makers for August 2022 shipment. Apparently, the offers will be on the lower side, with marginal differences in comparison with the July 2022 offers. The processing industry is in a chaotic state. On one side, the prices of the raw material have been falling freely. And, on the other side, the offtake of the finished products (pipes , fittings & others ) has been sluggish. The arrival of the monsoon season is another reason to worry as construction activities will retard during the season, reducing demand for the end products. Converters have lost buying confidence, so they restricted their PVC purchases to the quantities necessary to feed their immediate factory requirements. In the open bazaars, sellers have lost stability and indulged in panic selling due to the successive price cuts, and the dull demand. Importers and stockiest have come under the grip of intense fear, and they are exploring all possible ways to liquidate their ready, and incoming cargoes at the current price levels, and that too with favorable terms to buyers. As a result, buyers are encountering more attractive offers every next day. The fact remains is that the situation has turned alarming for all those who have ready imported variants / stock or cargoes in transit. Deals concluded of PvC in recent past -Ex Mundra ( Rs/Kg + GST ) High K SG 5 : Rs. 94-94.5 Low K : Rs. 115 -116 Purchase Opinion : In order to inject buying propensity local producers have announced Price Protection till month end. In addition, buyers will also get an early bird discount of Rs.2/Kg. There has also been an assurance that the prices will remain static at least up to 20 July 2022. From our side, we advise buyers to examine all price governing factors carefully before stepping into procurement process. For now, buying is advised for the immediate requirement. |
| PVC: Weekly Report & Future Trend - 1st Wk,July'22. (Dt: 02/07/2022- Posting Cycle : Weekly, Saturday) |
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China Bazaar : Prices in the major Chinese bazaars stayed low during the week. The twin impacts of the decline in crude oil prices and the possibility of a global economic recession to take place in the medium term have aroused worries in the minds of PVC processors in China. They have become more careful in raw material purchases, squeezing the demand further in an environment ruled by the damp demand conditions due to slow construction industry. India Bazaar The post COVID bazaar scenario has become a gamechanger for converters. The bazaar game was in favor of the importers /producers during the COVID days, rendering a lucrative ground to charge premiums. Today, processors have many options in the form of imported variants at cheaper prices. So, they are relieved from paying premiums, they paid for more than 10-11 months on account of acute shortage during the COVID days. In the week under consideration, bazaar participants saw international offers for July 2022 drifting southwards. And, Chinese offers for SG 5 were on a delta above USD 100/Mt with Taiwanese and South Korean offers in range of USD 1150-1175/MT. In the home circuit, RIL reduced price by Rs. 6/Kg with withdrawal of Price Protection. The INR weakening to a lifetime low of 79 against the USD, and the expected rise in the customs exchange rate have made converters conscious in their raw material procurement moves. In the uncertain conditions posed by these factors, most converters waited for the results of the 1 July 2022 price revision to set their next course of action. Despite the Price Protection in force, local producers slashed their price by Rs.6/Kg. And, bazaar participants have interpreted the move as the existence of a room for further price cuts in days ahead. Chinese Make SG 5 is being offered in range of Rs 101-102.5/Kg + GST Ex Bhiwandi with delta of ark East Rs. 10-12/Kg with Taiwanese & Other make. Readers will recall that we reported about a deal of Chinese SG 5 inner Mongolia that was done at Rs.97-98/Kg + GST Ex Mundra.An extra wide delta of Chinese make with local & other imports has created active demand of SG 5. At PolymerBazaar, we believe that in order to control free flow of Chinese PVC, imposition of ADD can be the only way out. Deals of PVC concluded in recent past.( Rs/Kg+GST) High 'K value , Chinese SG 5 : Rs.100.5-101.5 ( Ex Mundra) Low 'K value : Rs.117-118 ( Ex Bhiwandi) Purchase Opinion : Looking at the current and the possible future scenarios, and the expected influence of the price governing factors, buyers are advised to adopt a Wait & Watch policy. As per PB, the chances of further price downfall in global bazaars are on the higher side. If that materializes, commodity prices may undergo further cuts.* |
| PVC: Weekly Report & Future Trend - 4th Wk,June'22. (Dt: 25/06/2022- Posting Cycle : Weekly, Saturday) |
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Click to Download PDF with historical Data : China Bazaar: The retardation of the construction industry in China has played the spoilsport in PVC demand revival in that country. And, we have been saying this in our last few reports. Again, the bearish sentiments emanating due to the apprehension of a global economic slow down on account of the Fed’s interest rate hike compounded to the sluggish PVC demand situation in Chinese plastic raw material bazaars. In addition, the resumption of some plants after maintenance shutdown has increased the supply, causing an oversupply situation. So, the combination of oversupply and tepid demand has resulted in a notable price fall. In the night trading session at the DCE, PVC price fell to a 30-month low of 7181 RMB/MT. India: The PVC bazaars have displayed confusing states, posing grave challenges for buyers to decide when and how much to buy. The seed of the tricky confusion was sown by the domestic producers, as they exhibited an erratic behavior in their successive price revisions. On 1 June 2022, the domestic producers slashed their prices by Rs 6/Kg, then increased the price by Rs 2.5/Kg on 9 June 2022, and then cut the price by Rs 7/Kg on 22 June 2022. Due to the erratic price revision, many converters suffered significant losses by procuring the material at those prices. Importers also suffered losses by booking imports against the April and May offers from China. Due the port congestion, their cargoes are expected to arrive by June end or July first week. So, the landed costs will be significantly higher than the current price levels, entailing losses. A Delhi-based importer told our editorial team that he was one of the many importers suffering heavy losses by booking imports against those offers. The cumulative impacts of-- the demand slowdown in China, falling demand in India due to lesser off-take of finished products, ample availability of domestic and imported variants, and the monsoon season being round the corner—are clear: PVC demand in Indian bazaars is not likely to gain strength in the near future. And, the prices are likely to fall further. As per our assessment, there is a room for another price decrement of USD 30-40/MT or more, if the bazaar situation shows no improvement in terms of demand. However, only time will tell the story. Again, the country wide ban on SUP usage is likely to compress the demand to some extent. The massive price downfalls have unleashed a fear among stockiest and importers, creating a havoc among them, and they are having no other options but to indulge in the panic selling approach. Some of such sellers also are of the opinion that it is better to try out ‘loss booking’, as that will save them from suffering additional losses if they miss out in liquidating their existing stocks at the current price levels. Deals of PVC concluded in recent past.( Rs/Kg+GST) High 'K value , Chinese SG 5 : Rs.111-112 ( Ex Mundra) Low 'K value , OPC S 107 : Rs.118.5-119 ( Ex Bhiwandi) Purchase Opinion: Looking at the current and the possible future scenarios, and the expected influence of the price governing factors, buyers are advised to adopt a Wait & Watch policy. As per PB, the chances of further price downfall in global bazaars are on the higher side. If that materializes, it will cause further price reduction on 1 July '22.We will issue price prediction in due course of time. |
| PVC: Weekly Report & Future Trend - 3rd Wk,June'22. (Dt: 18/06/2022- Posting Cycle : Weekly, Saturday) |
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The US has imposed sanctions on a network of companies of the UAE, China, and Iran for helping the export of Iran origin petrochemicals. Readers will recall that the US had imposed sanctions on Iran, restricting oil-based product exports, due to adherence to nuclear program. The fallout could be the global bazaars getting deprived of Iranian petrochemical products. Again, there has been no sign of any easing of the Russia-Ukraine war, continuing to impart uncertainties in the global economies. China: There has been no major news related to the PVC commodity in China during this week. PVC trading remained lackluster as there was no improvement in the construction industry during the week. Readers are requested to refer to our last week’s PVC report, in which we discussed in-depth how the failure of the construction industry to gather speed contributed to the dull PVC trading in China. India: The start of the monsoon is only a few days away. And, that clearly speaks about the impact on the PVC bazaar in the country. With the onset of the monsoon season, the manufacturing of agricultural pipes will come to a standstill, weakening the demand for PVC, the key raw material for manufacturing of the pipes. Currently, a moderate demand is prevailing in the PVC bazaars in the country. On the supply side, there is ample availability—both domestic and imported variants. Notably, the spot prices for imported PVC have come down due to moderate demand vis-à-vis abundant availability. Taiwanese PVC maker, Formosa, will announce its July '22 offer by next week. In a deviation from its usual practice, Formosa has chosen to make the announcement in the third week, instead of the second week. We assume that the deviation is due to the uncertain bazaar conditions prevailing in most parts of Asia. [ Please Note : If the bazaar conditions continue to remain lackluster in the key Asian bazaars, Formosa may be forced to set its July'22 offer at lower levels ( compared to June'22 ) for India, China & other S.E.A countries.] Deals of PVC concluded in recent past.( Rs/Kg+GST,Ex Mundra) High 'K value , Chinese SG 5 : Rs.116-116.5 Purchase Opinion: Looking at the current and the possible future scenarios, and the expected influence of the price governing factors, Polymer procurement is advised at the current prices. However, we further advice our subscribers not to actuate any procurement decision in haste. Instead, it is necessary to be very careful before making a purchase decision due to the uncertainties ahead. So, buyers should have a close look on all price controlling factors to ensure they make the right procurement decision. |
| PVC : Weekly Report & Future trend - Wk 2, June'22. (Dt: 11/06/2022- Posting Cycle : Weekly, Saturday) |
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In China, the demand for PVC has strengthened significantly and has reached almost the pre-lock down levels. The resumption of manufacturing activities after the lock down has created robust demand for PVC. And, that has impacted the global bazaars, resulting in international PVC offers going northwards. Again, the robust buying activities in China has resulted in a gradual reduction in the export availability. Moreover, freight and logistics issues has played a compounding role to the upward PVC price movement in China. Indian Bazaar: The strengthening demand in China, and the consequential rise in the prices have impacted the Indian bazaar. Indian PVC processors have shed their pessimistic stance, and started to procure the material. So, demand has started to improve in Indian bazaars. During the recent price revision, Indian producers have lifted their prices by Rs 2.5/KG, which can be regarded as a signal to ask converters to start procuring in bulk, as the prices have started an upward journey. In the coming days, demand for PVC from the non-agricultural pipe segment is expected to catch momentum due to the spurt in the manufacturing activities. However, PVC demand from the agricultural-pipes segment is likely to remain muted due to the monsoon season to take-off after a few days. After that, demand for the pipes, hence PVC weakens. Deals of PVC concluded in recent past.( Rs/Kg+GST,Ex Bhiwandi) High 'K value : Rs.126-127 Low 'K Value : Rs.135-136 Purchase Opinion With the signs of demand strengthening being rife in India bazaars, and the international prices showing an upward trend, Indian producers are likely to hike their prices further in the next price revision. Therefore, buying at the current price levels is suggested. And, it will also be a wise decision for converters to build up their raw material inventories at the current prices. |
| PVC : Weekly Report & Future trend - Wk 1, June'22. (Dt: 04/06/2022- Posting Cycle : Weekly, Saturday) |
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The resumption of manufacturing activities in China after the lockdown has, however, not shown any concrete signs of PVC demand revival up until now. There has been talks doing the rounds that PVC demand in China will start strengthening. And, the bazaars have remained under close watch to validate the claims. However, things were somewhat different from our editorial team’s view. The combination of the factors—bearish sentiments for June arising from low international prices, and the construction industry failing to attain speed—kept buyers away from purchasing PVC in excess of their immediate requirements. As such, there are no signs of any demand revival at least for the next week. So, it makes no sense to take any hearsay for granted but keep watching the bazaar movements. Only time will tell what eventually takes effect. If demand recovers, it will be good news for Chinese PVC exporters, who have been exporting the material as they found no takers in their home bazaars due to the lockdown. Any demand recovery in China will prove to be a great relief for the exporters. In the SEA bazaars, the availability of competitively priced Russian and Chinese PVC cargos has played the spoilsport for sellers as those kept the price significantly low that incited buyers to postpone their procurement in the prospect of the prices falling further. Indian Bazaar: Constrained by the international pricing trend, Indian producers offered a significant price reduction of Rs 6/KG, with effect from 1 June 2022. At the same time, the producers withdrew the Price Protection schemes. And that means, buyers will no longer be protected from any future price reductions, if any. The remarkable price decrement has, however, not resulted in any buying spree. Instead, the buying stayed dull, and buyers refrained from purchasing any extra raw material. Due to the monsoon being round the corner, agricultural pipe makers are in a state of uncertainty because demand for the PVC pipes will slacken thereafter. Therefore, they are procuring the material with the hand-to-mouth approach, and preferred maintaining a low level of inventory. However, we expect that PVC item manufacturers, other than agricultural pipes, are going to build up their inventories at the current levels for future use. As such, buying is likely to gain strength in the coming days. If that happens, the prices will start rebounding. Deals of PVC concluded in recent past.( Rs/Kg+GST,Ex Bhiwandi) High 'K value : Rs.119-120 Low 'K Value : Rs.126-127 Purchase Opinion: On the supply side, there is ample availability of the material—both domestic and imported. In addition, there are plenty of international offers—from China, Japan, South Korea, Taiwan, and Thailand—with competitive prices. Subscribers are advised to watch and assess all the price controlling factors very carefully before buying. And, we expect PVC price trend to shift from soft to stable note in the near future. Also, buyers are advised to build up their inventories at the current rates |
| PVC: Weekly Report & Future Trend - LAST Wk,May'22. (Dt: 28/05/2022- Posting Cycle : Weekly, Saturday) |
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With the recent hike in Customs Exchange Rate, the cost of importing PVC has gone up. And, that also serves as a hint to PVC processors that they should not expect any massive price cuts in the upcoming price revision. Recently, the Customs Exchange Rate was hiked by INR 1.55/USD—to INR 78.60/USD from INR 77.05/USD. Our editorial team has analyzed the possible pricing strategy of domestic producers vis-à-vis the overall conditions, and came to the conclusion that there can be a downward price revision on 1 June 2022.Furthermore,demand resurgence in China & India - will be next trend drivers of commodity. Our bazaar assessment shows that there was a gradual rebound in PVC selling in the major bazaars in the country. Agricultural pipe makers have been forced to discard their wait-and-watch stance and procure the raw material due to their manufacturing needs. With monsoon to go on-stream after a month, the pipe manufacturers have been manufacturing aggressively to cater to the orders from the end-users. On a/c of prevailing uncertainties, mfg. sector is running factories with hand-to-mouth approach at low level inventory. Again, we expected that the buying will gain momentum after the next price cut because converters may participate in active buying process to build up their inventories. Consequently, the prices may start rebounding. However, dull atmosphere continued to prevail in Indian bazaars despite the gradual increase in buying. Deals of PVC concluded in recent past.( Rs/Kg+GST,Ex Bhiwandi) High 'K value : Rs.120-121 Low 'K Value : Rs.128-129 Purchase Opinion : On the supply side, there is ample availability of the material—both domestic and imported. In addition, there are plenty of international offers—from China, Japan, South Korea, Taiwan, and Thailand—with competitive prices. Subscribers are advised to watch and assess all the price controlling factors very carefully. And, we expect PVC price trend to attain stability in the near future. As current procurement is safe under " Price Protection", polymer buying is advised. In this regards, We will issue Price Prediction in due course of time. |
| PVC: Weekly Report & Future Trend - 4th Wk,May'22. (Dt: 21/05/2022- Posting Cycle : Weekly, Saturday) |
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Commodity Trend: Assessed as soft. Latest Int'l. Offers: CIF NS, Mumbai. For June’ 22 shipments,Taiwanese Maker, Formosa, has announced their fresh offers of High K' value PVC at USD 1410/Mt. Latest Rate Revision: WEF 19 May' 22, RIL reduced PVC price by Rs.10/Kg. The company has also withdrawn Price Protection. Custom Exchange Rate: Custom Exchange Rate ($-INR) for imports was revised to Rs.78.60 ( +1.55 ) w.e.f May 20 '22, 2022, from the previous Rs 77.05 on May 6, 2022. Bazaar Pulse : Plastic raw material bazaar participants in India have found themselves in a tricky spot. While, sellers have encountered challenges in deciding whether or not to stock more PVC stocks, buyers found difficulty in fixing a procurement plan due to the significant price downslides. There have been plenty of international offers—from China, Japan, South Korea, Taiwan, and Thailand—with competitive prices. But there were no responses from Indian processors, as Indian producers lowered their prices by a heavy reduction of Rs 10/Kg, giving no specific pricing advantage from importing. In a discussion with a Delhi-based trader about the PVC bazaar scenario, he said, “With the monsoon being just a month away, and the heavy price falls, we do not see it a right time to spend on stocking the PVC material.” What he meant was—PVC pipe manufacturing will slacken with the onset of the monsoon season. So, PVC buying will lose strength. Therefore, sellers will find it difficult to dispose off their stock in that situation. In that case, they will suffer losses. PVC processors have adopted cautious stances in procurement due to the high price volatilities. They have refrained from extra procurement for the time being in the fear of the prices drifting further down. Deals of PVC concluded in recent past.( Rs/Kg+GST,Ex Mundra ) High 'K value : Rs.121-122 Low 'K Value : Rs.133-135 Purchase Opinion : Based on above outlook with emerging equations of other price controlling elements, we predict thar the commodity is heading towards a softer note. Therefore, PVC procurement is advised for routine requirements at current levels. There are chances that Indian Producer may announce "Price Protection" to boost confidence amongst processors. |
| PVC: Weekly Report & Future Trend - 3rd Wk,May'22. (Dt: 14/05/2022- Posting Cycle : Weekly, Saturday) |
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Ever since the outbreak of the pandemic from March 2022 beginning, the PVC bazaar in China came under severe pressure—both selling and pricing. And, the impact of the pressure did not remain confined to the Chinese bazaar alone. The impact propagated to the entire Asian bazaars, including India. Chinese sellers, finding no other way to handle the intense pressure, resorted to exporting the material to SEA bazaars at competitive offers. So, other overseas players have been forced to lower their offers to sustain in the competition arising from low priced Chinese offers. Commodity Trend: Assessed as soft. The resultant oversupply in the Asian PVC bazaars have resulted a soft trading atmosphere, as buyers have been expecting further price down slides.Interestingly, the expectation is likely to materialize, as there are rumors doing the rounds that international PVC offers for June are likely to decline by USD 40-80/Mt from the May'22 levels. Latest Int'l. Offers for CIF NS, Mumbai: For late May’ 22 shipments, overseas producers announced their fresh offers of High & Low' K value at USD 1530-1540/Mt. Latest Rate Revision : WEF 12 May' 22, RIL left PVC price unchanged. Custom Exchange Rate : Custom Exchange Rate ($-INR) for imports was revised to Rs.77.05 ( -0.10 ) w.e.f May 6 '22, 2022, from the previous Rs 77.15 on April 22, 2022. Buying Pulse: One aspect is clear , PVC buying momentum is going to harden soon. In a communication with a reputed converter, our editorial team asked about the PVC procurement strategy; in response, the converter said, “We are anticipating June' 22 offers to be quoted lower, if so, we will book against those offers.” From the conversation, we came to know that PVC converters are waiting for the lower June offers. In view of the strong possibility of the international offers to be quoted lower, Chinese suppliers have been lowering PVC quotes with every passing week. Furthermore, we have learnt that Chinese PVC offers have come down to substantial levels for CIF India -in this week. However, Chinese sellers are not expected to achieve good sales in the Indian bazaars because of delivery concerns. But, one thing is for sure—PVC buying will strengthen substantially in the coming days due to the escalation in manufacturing agricultural pipes. India producers have tried to invigorate the buying by announcing a Price Protection scheme for May '22. Deals of PVC concluded in recent past.( Rs/Kg+GST,Ex Mundra ) High 'K value - 67: Rs.130-130.5 Chinese SG 6 : Rs.127-128 Low 'K Value - 57 : Rs.137-138 Purchase Opinion : Based on above outlook with emerging equations of other price controlling elements, we predict the commodity heading towards to softer note. Therefore, PVC procurement is advised for routine requirements at current levels. |
| PVC: Weekly Report & Future Trend - 1st Wk,May'22. (Dt: 30/04/2022- Posting Cycle : Weekly, Saturday) |
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Feedstock: Ethylene CFR N.E.A Basis:( $/MT) Monday Opening (02/05/22): 1215 Friday Closing ( 06/05/22): 1215 Week On Week Difference : Stable VCM CFR SEA basis:( $/MT) Monday Opening (02/05/22): 1310 Friday Closing ( 06/05/22): 1275 Week On Week Difference : Down by 35 EDC CFR SEA basis:( $/MT) Monday Opening ( 02/05/22): 695 Friday Closing (06/05/22): 695 Week On Week Difference : Stable China Bazaar: PVC Spot Bazaar offers( RMB/MT) Monday Opening ( 02/05/22): 8700 Friday Closing ( 06/05/22 ): 8750 Week On Week Difference : Up by 50 In April, a slew of factors, like lockdown, and transportation issues, have eroded PVC demand from the Chinese plastic raw material bazaars. As a result, two developments took place. One, PVC producers lowered their plant operating rates. Two, sellers have exported most of their stocks to SEA bazaars, especially to India. However, there has been some improvements in the transportation issues. And, demand is likely to improve in May. But there will be supply tightness due to many plants operating at lower rates. Commodity Trend: Assessed as stable. Latest Int'l. Offers for CIF NS, Mumbai: For May’ 22,,Taiwanese PVC maker - Formosa Plastics revealed their fresh offers of High & Low' K value at USD 1560/Mt. Latest Rate Revision: WEF 1 May' 22, RIL left PVC price unchanged. Custom Exchange Rate : ($-INR) for imports was revised to Rs.77.15 (+0.35) w.e.f April '22 , 2022, from the previous Rs 76.80 on April 8, 2022. Buying Pulse: The falling international prices have put Indian PVC converted on an alert that the prices are likely to fall further. So, they refrained from purchasing in excess of their immediate requirements, and waiting and watching the price movements. Today, their expectations of price correction failed as RIL choose to roll over in PVC prices wef May 1,2022. However, sellers are expected to see a different bazaar scenario in May. Pipe & floor item manufactures are expecting good orders. So, the manufacturing will gain momentum, resulting in bulk PVC purchases. Again, the aggressiveness of pre-monsoon manufacturing, especially agricultural pipes, is likely to consume the existing inventories of the manufacturers. As such, they will be forced to purchase PVC in bulk quantities in May. Therefore, the demand is expected to go up in May, and that would push the prices up. Deals of PVC concluded in recent past.( Rs/Kg+GST,Ex Mundra ) High 'K value : Rs.134-135 Low 'K Value : Rs.140-141 Purchase Opinion: Based on above outlook with emerging equations of other price controlling elements, we predict the commodity heading towards stable note. Therefore, PVC procurement is advised at current levels. |
| PVC: Weekly Report & Future Trend - 4th Wk,April'22. (Dt: 23/04/2022- Posting Cycle : Weekly, Saturday) |
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Feedstock: Ethylene CFR N.E.A Basis:( $/MT) Monday Opening (11/04/22): 1375 Friday Closing ( 15/04/22): 1315 Week On Week Difference : Down by 60 VCM CFR SEA basis:( $/MT) Monday Opening (11/04/22): 1295 Friday Closing ( 15/04/22): 1330 Week On Week Difference : Up by 35 EDC CFR SEA basis:( $/MT) Monday Opening ( 11/04/22): 705 Friday Closing ( 15/04/22): 705 Week On Week Difference : Stable China Bazaar: PVC Spot Bazaar offers( RMB/MT) Monday Opening ( 11/04/22): 8970 Friday Closing ( 15/04/22): 8970 Week On Week Difference : Stable Commodity Trend: Assessed as stable. Latest Int'l. Offers for CIF NS, Mumbai: For April’ 22 overseas offers for High & Low' K value PVC were assessed higher at USD 1640/Mt to USD 1650Mt respectively. Chinese sellers have exported the material to off-load their excess inventories due to the dull demand in their home bazaars on account of the lock down. Latest Rate Revision: WEF 14 April'22,RIL kept PVC price same. Custom Exchange Rate Custom Exchange Rate ($-INR) for imports was revised to Rs.76.80 (-0.10) w.e.f April '8 , 2022, from the previous Rs 76.90 on March 18, 2022. Buying Pulse: This week, PVC bazaars in India saw a soft note. Buyers have adopted a wait and watch policy, abstaining from buying in excess of their immediate requirements. On the other hand, stockiest and importers have tried to minimize their inventories at the current prices aiming at Profit Booking. The prevailing crude prices have ruled out the possibility of any PVC price correction in the near- term prices. So, dull buying sentiments have persisted among buyers.At the same time, there has been no supply issues. Indian bazaars are flooded with Chinese PVC material at attractive prices. However, demand is expected to revive in the coming days. The pre monsoon buying necessity will trigger massive purchases in the coming days. Deals of PVC concluded in recent past.( Rs/Kg+GST,Ex Mundra ) High 'K value : Rs.136-138 Low 'K Value : Rs.146 -148 Purchase Opinion: Based on above outlook with emerging equations of other price controlling elements, commodity is heading towards steady note. PVC buying opinion is suggested at current levels. |
| PVC: Weekly Report & Future Trend - 3rd Wk,April'22. (Dt: 16/04/2022- Posting Cycle : Weekly, Saturday) |
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Feedstock: Ethylene CFR N.E.A Basis:( $/MT) Monday Opening (11/04/22): 1375 Friday Closing ( 15/04/22): 1315 Week On Week Difference : Down by 60 VCM CFR SEA basis:( $/MT) Monday Opening (11/04/22): 1295 Friday Closing ( 15/04/22): 1330 Week On Week Difference : Up by 35 EDC CFR SEA basis:( $/MT) Monday Opening ( 11/04/22): 705 Friday Closing ( 15/04/22): 705 Week On Week Difference : Stable China Bazaar: PVC Spot Bazaar offers( RMB/MT) Monday Opening ( 11/04/22): 8970 Friday Closing ( 15/04/22): 8970 Week On Week Difference : Stable Commodity Trend: Assessed as stable. Latest Int'l. Offers for CIF NS, Mumbai: For April’ 22 overseas offers for High & Low' K value PVC were assessed higher at USD 1640/Mt to USD 1650Mt respectively. Chinese sellers have exported the material to off-load their excess inventories due to the dull demand in their home bazaars on account of the lock down. Latest Rate Revision: WEF 14 April'22,RIL kept PVC price same. Custom Exchange Rate Custom Exchange Rate ($-INR) for imports was revised to Rs.76.80 (-0.10) w.e.f April '8 , 2022, from the previous Rs 76.90 on March 18, 2022. Buying Pulse: This week, PVC bazaars in India saw a soft note. Buyers have adopted a wait and watch policy, abstaining from buying in excess of their immediate requirements. On the other hand, stockiest and importers have tried to minimize their inventories at the current prices aiming at Profit Booking. The prevailing crude prices have ruled out the possibility of any PVC price correction in the near- term prices. So, dull buying sentiments have persisted among buyers.At the same time, there has been no supply issues. Indian bazaars are flooded with Chinese PVC material at attractive prices. However, demand is expected to revive in the coming days. The pre monsoon buying necessity will trigger massive purchases in the coming days. Deals of PVC concluded in recent past.( Rs/Kg+GST,Ex Mundra ) High 'K value : Rs.136-138 Low 'K Value : Rs.146 -148 Purchase Opinion: Based on above outlook with emerging equations of other price controlling elements, commodity is heading towards steady note. PVC buying opinion is suggested at current levels. |
| PVC: Weekly Report & Future Trend - 2nd Wk,April'22. (Dt: 09/04/2022- Posting Cycle : Weekly, Saturday) |
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Ethylene CFR N.E.A Basis:( $/MT) Monday Opening (04/04/22): 1405 Friday Closing ( 08/04/22): 1385 Week On Week Difference : Down by 20 VCM CFR SEA basis:( $/MT) Monday Opening (04/04/22): 1295 Friday Closing ( 08/04/22): 1285 Week On Week Difference : Down by 10 EDC CFR SEA basis:( $/MT) Monday Opening ( 04/04/22): 745 Friday Closing ( 08/04/22): 705 Week On Week Difference : Down by 40 China Bazaar: PVC Spot Bazaar offers( RMB/MT) Monday Opening ( 04/04/22): 9040 Friday Closing ( 08/04/22): 9020 Week On Week Difference : Down by 20 Commodity Trend: Assessed as stable to firm. Latest Int'l. Offers for CIF NS, Mumbai: For April’ 22 overseas offers for High & Low' K value PVC were assessed higher at USD 1640/Mt to USD 1650Mt respectively. Since China observes lockdown in many industrial pockets ,demand graph is shifting to southward forcing traders, stockiest, to look after other trade opportunities emerging in neighboring countries for better netbacks Latest Rate Revision: WEF 7th April'22,RIL kept PVC price same. Custom Exchange Rate: Custom Exchange Rate ($-INR) for imports was revised to Rs.76.80 (-0.10) w.e.f April '8 , 2022, from the previous Rs 76.90 on March 18, 2022. Buying Pulse: At the domestic bazaars, buyers now have the option of procuring PVC at attractive prices. The underlying reason is that Indian bazaars have become flooded with Chinese origin PVC as Chinese sellers have exported the material due to dull demand conditions in their own country bazaars on account of the lockdown. As a result, the delta between the prevailing prices with imports have widened by more than USD 60-70/MT. In the meantime, all South Asian bazaar sources have confirmed the availability of Chinese cargoes. PVC processors have stuck to the need based buying approach , staying away from purchasing in excess of their immediate requirements. They are waiting for the prices to hit the bottom.However, it does not hint at dull demand conditions. The demand will rise significantly in the coming days due to pre monsoon purchases. Deals of PVC concluded in recent past.( Rs/Kg+GST,Ex Mundra ) High 'K value : Rs.139-140 Low 'K Value : Rs.148-149 Purchase Opinion: Based on above outlook with emerging equations of other price controlling elements, commodity is heading towards steady note. We, therefore, suggest purchases for routine requirements. |
| PVC: Weekly Report & Future Trend - 1st Wk,April'22. (Dt: 09/04/2022- Posting Cycle : Weekly, Saturday) |
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Feedstock: Ethylene CFR N.E.A Basis:( $/MT) Monday Opening (28/03/22): 1375 Friday Closing ( 01/04/22): 1405 Week On Week Difference : Up by 30 VCM CFR SEA basis:( $/MT) Monday Opening (28/03/22): 1295 Friday Closing ( 01/04/22): 1295 Week On Week Difference : Stable EDC CFR SEA basis:( $/MT) Monday Opening ( 28/03/22): 745 Friday Closing ( 01/04/22): 745 Week On Week Difference : Stable China Bazaar: PVC Spot Bazaar offers( RMB/MT) Monday Opening ( 28/03/22): 8950 Friday Closing ( 01/04/22): 9040 Week On Week Difference : Up by 90 Commodity Trend: Assessed as firm. Latest Int'l. Offers for CIF NS, Mumbai: As the international prices have gone up, For April’ 22 overseas offers for High & Low' K value PVC were assessed higher at USD 1640/Mt to USD 1650Mt respectively.Having inputs from local importer, Japan origin duty free PVC is being offered at USD 1750-1780/ Mt CIF India basis. Pl.note, as per JCEPA agreement , import of PVC of Japan origin attracts zero duty however from other countries custom duty will be charged at 10 %. Latest Rate Revision: WEF 1st April'22,RIL increased price by Rs. 1.5/Kg. Custom Exchange Rate :There were no changes in the Customs Exchange Rate during the week. The rate remained at INR 76.90 per USD as per the revision on 18th March 2022. The rate was up by 0.25 from that of INR 76.65 per USD in the previous revision on 4th March 2022. Buying Pulse:Domestic polymer bazaars saw two opposing buying trends during the week under review. In the beginning of the week, the bazaars saw active buying due to the buyers purchasing aggressively in anticipation of a price hike. Their anticipation came true. Domestic producers increased their prices, turning buying sentiments dull during the closing days of the week. During the week, polymer processors confronted multiple issues, such as dull demand, liquidity crunch & many others. In a business landscape dominated by cut-throat competition, unpredicted volatility has casted its shadow on their business, resulting in very thin profit margins. PVC resin demand is expected to gain momentum due to improved pre-monsoon demand. The prospects of supply chain disruptions are likely with commencement of Ramadan from April'22. Due to the above developments & influence of possible scenarios, Indian processors are expected to witness R/M unavailability in the region. Deals of PVC concluded in recent past.( Rs/Kg+GST,Ex Mundra ) High 'K value : Rs.138-139 Low 'K Value : Rs.144-145 Purchase Opinion: Considering the ongoing outlook in calculation along with the expected influences of other price controlling factors, PVC procurement is advised at current levels. |
| PVC: Weekly Report & Future Trend - Last Wk,March'22. (Dt: 26/03/2022- Posting Cycle : Weekly, Saturday) |
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Feedstock:
Ethylene CFR N.E.A Basis:( $/MT) Monday Opening (21/03/22): 1355 Friday Closing ( 25/03/22): 1355 Week On Week Difference : Stable VCM CFR SEA basis:( $/MT) Monday Opening (21/03/22): 1295 Friday Closing ( 25/03/22): 1295 Week On Week Difference : Stable EDC CFR SEA basis:( $/MT) Monday Opening ( 21/03/22): 745 Friday Closing ( 25/03/22): 745 Week On Week Difference : Stable China Bazaar: PVC Spot Bazaar offers( RMB/MT) Monday Opening ( 21/03/22): 8930 Friday Closing ( 25/03/22): 8900 Week On Week Difference : Down by 30 Commodity Trend: Assessed as firm. Latest Int'l. Offers for CIF NS, Mumbai: This week, Taiwanese PVC maker, Formosa Plastic corp. announced their fresh offer for high K 'value PVC is at US$ 1640/Mt for April'22 deliveries. Latest Rate Revision: WEF 24th March'22,RIL kept PVC price unchanged. Custom Exchange Rate ($-INR) for imports was revised to Rs.76.90 (+0.25 ) w.e.f March 18, 2022, from the previous Rs 76.65 on March 4, 2022. Buying Pulse: As per our assessment, we observed routine offtakes by the processing industry. However, processors confronted multiple issues, such as dull demand, liquidity crunch & R/M availability. In a business landscape dominated by cut-throat competition, unpredicted volatility has casted its shadow on their business, resulting in very thin profit margins. On a/c of the recent attack on S.Aramco's Oil facility, Crude values may gain upward momentum in near future. At other end, Russia - Ukraine war is still in force with no sign of settling at any point, signaling no possibility of reversal in the rising crude oil prices. The prospects of supply chain disruptions are likely with commencement of Ramadan from April'22 With above developments & influence of possible scenarios, Indian processors are expected to witness R/M unavailability in the region. Deals of PVC concluded in recent past.( Rs/Kg+GST,Ex Mundra ) High 'K value : Rs.138-139 Low 'K Value : Rs.143-144 Purchase Opinion: Considering the ongoing outlook in calculation along with the expected influence of other price controlling factors, Polymer procurement is suggested at current levels. Indian Polymer producers may announce price rise on April 1'22- we will issue Price Prediction in a due course of time. |
| PVC: Weekly Report & Future Trend - 4th Wk,March'22. (Dt: 11/03/2022- Posting Cycle : Weekly, Saturday) |
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Click to Download PDF with historical Data : Ethylene CFR N.E.A Basis:( $/MT) Monday Opening (14/03/22): 1355 Friday Closing ( 19/03/22): 1355 Week On Week Difference : Stable VCM CFR SEA basis:( $/MT) Monday Opening (14/03/22): 1295 Friday Closing ( 19/03/22): 1295 Week On Week Difference : Stable EDC CFR SEA basis:( $/MT) Monday Opening ( 14/03/22): 795 Friday Closing ( 19/03/22): 795 Week On Week Difference : Stable China Bazaar: PVC Spot Bazaar offers( RMB/MT) Monday Opening ( 14/03/22): 9070 Friday Closing ( 19/03/22): 8930 Week On Week Difference : Down by 140 Bazaar Watch : Commodity Trend: Assessed as stable. Latest Int'l. Offers for CIF NS, Mumbai: Overseas offer for high K 'value PVC is at US$ 1650/Mt for April'22 deliveries. Taiwanese PVC maker Formosa Plastic Corp. is expected to announce their fresh offers for April'22 by next week. Latest Rate Revision: WEF 17th March'22,RIL kept PVC price unchanged. Custom Exchange Rate ($-INR) for imports was revised to Rs.76.90 (+0.25 ) w.e.f March 18, 2022, from the previous Rs 76.65 on March 4, 2022. Buying Pulse: This week, buying sentiments remained dull due to the prevalence of need-based buying approach. Processors are waiting for more attractive offers to arouse their buying interest. On a/c of ample product availability, an open bazaar premium is squeezing day by day. Industry is waiting for overseas producers, esp. FPC to announce their next offers which will direct the trend of commodity. However, the supply chain cycle from Muslim countries may undergo disruption as Ramadan starts from next month. Under the influence of above possible scenarios, Indian processors are likely to experience tight product availability in the region. Deals of PVC concluded in recent past.( Rs/Kg+GST,Ex Mundra ) High 'K value : Rs.136-137 Low 'K Value : Rs.140-141 Purchase Opinion: Keeping all above price controlling factors in calculation along with expected influence of recent developments, need based Polymer buying is advised for routine requirements. |
| PVC: Weekly Report & Future Trend - 3rd Wk,March'22. (Dt: 11/03/2022- Posting Cycle : Weekly, Saturday) |
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Feedstock: Ethylene CFR N.E.A Basis:( $/MT) Monday Opening (07/03/22): 1265 Friday Closing ( 11/03/22): 1365 Week On Week Difference : Up by 100 VCM CFR SEA basis:( $/MT) Monday Opening (07/03/22): 1265 Friday Closing ( 11/03/22): 1265 Week On Week Difference : Stable EDC CFR SEA basis:( $/MT) Monday Opening ( 07/03/22): 840 Friday Closing ( 11/03/22): 840 Week On Week Difference : Stable China Bazaar: PVC Spot Bazaar offers( RMB/MT) Monday Opening ( 07/03/22): 8800 Friday Closing ( 11/03/22): 9070 Week On Week Difference : Up by 270 Bazaar Watch : Commodity Trend: Assessed as firm. Latest Int'l. Offers for CIF NS, Mumbai : Overseas offer for high K 'value PVC is at US$ 1650/Mt for April'22 deliveries. Latest Rate revision: WEF 10th March'22,RIL increased PVC price by Rs.5/Kg. Custom Exchange Rate ($-INR) for imports was revised to Rs.76.65 (+0.60 ) w.e.f March 4, 2022, from the previous Rs 76.05 on Feb.18, 2022. Buying Pulse : On a/c of prolonged geopolitical tension Crude & other energy sectors gained momentum, inviting relentless hikes in commodity prices.Followed by sharp rise in PVC prices - buying sentiments remained slow as processors are witnessing berries at current levels. In few pockets, shortage of Low K' value PVC was reported, while in High K' Value many overseas brands are readily available to serve industry's requirements. Deals of PVC concluded in recent past.( Rs/Kg+GST,Ex Mundra ) High 'K value : Rs.146-147 Low 'K Value : Rs.154-155 Purchase Opinion: Based on recent developments along with due effect of commodity trend drivers, polymer procurement is suggested at the company price. |
| PVC: Weekly Report & Future Trend - 1st Wk,March'22. (Dt: 05/03/2022- Posting Cycle : Weekly, Saturday) |
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Feedstock: Ethylene CFR N.E.A Basis:( $/MT) Monday Opening (28/02/22): 1235 Friday Closing ( 04/03/22): 1255 Week On Week Difference : Up by 20 VCM CFR SEA basis:( $/MT) Monday Opening (28/02/22): 1265 Friday Closing ( 04/03/22): 1265 Week On Week Difference : Stable EDC CFR SEA basis:( $/MT) Monday Opening ( 28/02/22): 840 Friday Closing ( 04/03/22): 840 Week On Week Difference : Stable China Bazaar: PVC Spot Bazaar offers( RMB/MT) Monday Opening ( 28/02/22): 8450 Friday Closing ( 04/03/22): 8750 Week On Week Difference : Up by 300 Bazaar Watch : Commodity Trend: Assessed as firm. Latest Int'l. Offers for CIF NS, Mumbai : This week, Taiwanese PVC maker Formosa Plastic Corp. announced fresh offer of low & high K 'value PVC at US$ 1560/Mt for March'22 -April'22 deliveries. Latest Rate revision: WEF 24th Feb'22,RIL kept PVC price unchanged. Latest Custom exchange rate: Custom Exchange rate ($-INR) for imports was revised to Rs.76.05 (+0.30 ) wef February 18th, 2022, from the previous 75.75 on Feb.4th, 2022.. Buying pulse: On a/c of esclated tension betwwen Russia & Ukraine,Crude & other energy variants are at multi year high.This will also lift feedstock prices alongwith other petrochemical commodities.However demand dynamics are slow as industry reports discouraging offtake of finished products. Deals of PVC concluded in recent past.( Rs/Kg+GST,Ex Mundra ) High 'K value : Rs.134-135 Low 'K Value : Rs.142-143 Purchase Opinion: Keeping current scenario in calculation alongwith status of other price governing factors,PVC prices are expected to rise for 1st March'22. Polymer procurement is suggested at current levels. |
| PVC: Weekly Report & Future Trend - 1st Wk March'22. (Dt: 26/02/2022- Posting Cycle : Weekly, Saturday) |
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Feedstock: Ethylene CFR N.E.A Basis:( $/MT) Monday Opening (21/02/22): 1225 Friday Closing ( 25/02/22): 1265 Week On Week Difference : Up by 40 VCM CFR SEA basis:( $/MT) Monday Opening (21/02/22): 1195 Friday Closing ( 25/02/22): 1195 Week On Week Difference : Stable EDC CFR SEA basis:( $/MT) Monday Opening ( 21/02/22): 860 Friday Closing ( 25/02/22): 860 Week On Week Difference : Stable China Bazaar: PVC Spot Bazaar offers( RMB/MT) Monday Opening ( 21/02/22): 8660 Friday Closing ( 25/02/22): 8460 Week On Week Difference : Down by 200 Bazaar Watch : Commodity Trend: Assessed as firm. Latest Int'l. Offers for CIF NS, Mumbai : This week, Taiwanese PVC maker Formosa Plastic Corp. announced fresh offer of low & high K 'value PVC at US$ 1560/Mt for March'22 -April'22 deliveries. Latest Rate revision: WEF 24th Feb'22,RIL kept PVC price unchanged. Latest Custom exchange rate: Custom Exchange rate ($-INR) for imports was revised to Rs.76.05 (+0.30 ) wef February 18th, 2022, from the previous 75.75 on Feb.4th, 2022.. Buying pulse:On a/c of esclated tension betwwen Russia & Ukraine,Crude & other energy variants are at multi year high.This will also lift feedstock prices alongwith other petrochemical commodities.However demand dynamics are slow as industry reports discouraging offtake of finished products. Deals of PVC concluded in recent past.( Rs/Kg+GST,Ex Mundra ) High 'K value : Rs.134-135 Low 'K Value : Rs.142-143 Purchase Opinion: Keeping current scenario in calculation alongwith status of other price governing factors,PVC prices are expected to rise for 1st March'22. Polymer procurement is suggested at current levels. |
| PVC: Weekly Report & Future Trend - 4th Wk Feb'22. (Dt: 19/02/2022- Posting Cycle : Weekly, Saturday) |
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Feedstock: Ethylene CFR N.E.A Basis:( $/MT) Monday Opening (14/02/22): 1205 Friday Closing ( 18/02/22): 1215 Week On Week Difference : Up by 10 VCM CFR SEA basis:( $/MT) Monday Opening (14/02/22): 1160 Friday Closing ( 18/02/22): 1195 Week On Week Difference : Up by 35 EDC CFR SEA basis:( $/MT) Monday Opening ( 14/02/22): 885 Friday Closing ( 18/02/22): 860 Week On Week Difference : Down by 25 China Bazaar: PVC Spot Bazaar offers( RMB/MT) Monday Opening ( 14/02/22): 8990 Friday Closing ( 18/02/22): 8720 Week On Week Difference : Down by 270 Bazaar Watch: Commodity Trend: Assessed as stable. Latest Int'l. Offers for CIF NS, Mumbai : This week, Int'l. offers assessed stable at US$ 1550-1560/Mt Latest Rate revision: WEF 17th Feb'22,RIL kept PVC price unchanged. Latest Custom exchange rate: Custom Exchange rate ($-INR) for imports was revised to Rs.76.05 (+0.30 ) wef February 18th, 2022, from the previous 75.75 on Feb.4th, 2022.. Buying pulse: Deals concluded in the recent pass have sent clear message that processors have opted for wait & watch with an intention to have limited inventories at current levels.They prefer to remain sideline fearing the uptrend might prove unsustainable.Reduction at open bazaar premium confirms dull buying sentiments of processing industry. Taiwanese major, Formosa is expected to reveal their fresh offers for March '22 deliveries by next week. Deals of PVC concluded in recent past.( Rs/Kg+GST,Ex Mundra ) High 'K value : Rs.135-136 Low 'K Value : Rs.143-144 Purchase Opinion: Considering recent outlook & influence of other price deciding factors, Polymer buying is advised at current levels. |
| PVC: Weekly Report & Future Trend - 3rd Wk Feb'22. (Dt: 12/02/2022- Posting Cycle : Weekly, Saturday) |
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Feedstock: Ethylene CFR N.E.A Basis:( $/MT) Monday Opening (07/02/22): 1005 Friday Closing ( 11/02/22): 1195 Week On Week Difference : Up by 190 VCM CFR SEA basis:( $/MT) Monday Opening (07/02/22): 1160 Friday Closing ( 11/02/22): 1160 Week On Week Difference : Stable EDC CFR SEA basis:( $/MT) Monday Opening ( 07/02/22): 885 Friday Closing ( 11/02/22): 885 Week On Week Difference : Stable China Bazaar: PVC Spot Bazaar offers( RMB/MT) Monday Opening ( 07/02/22): 8590 Friday Closing ( 11/02/22): 8920 Week On Week Difference : Up by 330 Bazaar Watch: Global Trend: Assessed as firm. Latest Int'l. Offers for CIF NS, Mumbai : This week, Int'l. offers assessed higher at US$ 1550-1560/Mt Latest Rate revision: WEF 10th Feb'22,RIL increased PVC price by Rs.2/Kg Latest Custom exchange rate: Custom Exchange rate ($-INR) for imports was revised to Rs.75.75 (+0.55 ) wef February 4th, 2022, from the previous 75.30 on Jan.21st, 2022.Buying pulse: Offers of overseas cargoes continue to climb on the back of surging local bazaar, tighter availability & incline in energy sectors. Industry will surely witness price increments in days to come. Deals of PVC concluded in recent past.( Rs/Kg+GST,Ex Mundra ) High 'K value : Rs.137-138 Low 'K Value : Rs.145-146 Purchase Opinion: Based on above facts & figures which governs commodity trend, clearly hints towards upward direction.Polymer procurement is suggested at current levels. |
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Click to Download PDF with historical Data :
Feedstock: Ethylene CFR N.E.A Basis:( $/MT) Monday Opening (31/01/22): 990 Friday Closing ( 04/02/22): 1005 Week On Week Difference : Up by 15 VCM CFR SEA basis:( $/MT) Monday Opening (31/01/22): 1160 Friday Closing ( 04/02/22): 1160 Week On Week Difference : Stable EDC CFR SEA basis:( $/MT) Monday Opening ( 31/01/22): 885 Friday Closing ( 04/02/22): 885 Week On Week Difference : Stable China Bazaar: PVC Spot Bazaar offers( RMB/MT) Monday Opening ( 31/01/22): 8460 Friday Closing ( 04/02/22): 8460 Week On Week Difference : Stable Bazaar Watch: Global Trend: Assessed as stable to firm. Latest Int'l. Offers for CIF NS, Mumbai : This week, Int'l. offers assessed higher at US$ 1550-1560/Mt Latest Rate revision: WEF 1st Feb'22,RIL kept PVC price unchanged. Latest Custom exchange rate:Custom Exchange rate ($-INR) for imports was revised to Rs.75.75 (+0.55 ) wef February 4th 2022, from the previous 75.30 on Jan.21st, 2022. Buying pulse:At domestic front, buying sentiments remained routine & need base.Product availability ratio stands at higher side with multiple options ranging from local makes to imported ones.Regional demand is likely to improve further in days ahead. Deals of PVC concluded in recent past.( Rs/Kg+GST,Ex Mundra ) High 'K value : Rs.131-132 Low 'K Value : Rs.142-143 Purchase Opinion: In line with above scenario with expected effect of other price deciding drivers Polymer buying is advised at current levels. |
| PVC: Weekly Report & Future Trend - 1st Wk Feb'22. (Dt: 29/01/2022- Posting Cycle : Weekly, Saturday) |
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Ethylene CFR N.E.A Basis:( $/MT) Monday Opening (24/01/22): 930 Friday Closing ( 28/01/22): 985 Week On Week Difference : Up by 55 VCM CFR SEA basis:( $/MT) Monday Opening (24/01/22): 1105 Friday Closing ( 28/01/22): 1160 Week On Week Difference : Up by 55 EDC CFR SEA basis:( $/MT) Monday Opening ( 24/01/22): 830 Friday Closing ( 28/01/22): 885 Week On Week Difference : Up by 55 China Bazaar: PVC Spot Bazaar offers( RMB/MT) Monday Opening ( 24/01/22): 8460 Friday Closing ( 28/01/22): 8460 Week On Week Difference : Stable Bazaar Watch: Global Trend: Assessed as stable to firm. Latest Int'l. Offers for CIF NS, Mumbai : This week, Int'l. offers assessed higher at US$ 1530-1550/Mt Latest Rate revision: WEF 20th Jan'22,RIL decreased PVC Prices by Rs.4/Kg. Latest Custom exchange rate: Custom Exchange rate ($-INR) for imports was revised to Rs.75.30 (-0.10 ) wef January 21, 2022, from the previous 75.40 on Jan.7th, 2022. Buying pulse:PVC prices have mostly preserved their increasing trend for Indian bazaar. This week, demand has remained supporting in anticipation of price rise on 1st Feb.'22. Deals of PVC concluded in recent past.( Rs/Kg+GST,Ex Mundra ) High 'K value : Rs.132-133 Low 'K Value : Rs.140-141 Purchase Opinion:Considering current outlook & expected influence of other price controlling factors,commodity is set to witness uptrend in near future.Indian Polymer producers will withdraw existing Sp.Incentive schemes & offer price increment for 1st Feb.'22. Polymer procurement is suggested at current levels. |
| PVC: Weekly Report & Future Trend - 4th Wk Jan'22. (Dt: 22/01/2022- Posting Cycle : Weekly, Saturday) |
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Feedstock: Ethylene CFR N.E.A Basis:( $/MT) Monday Opening (17/01/22): 955 Friday Closing ( 21/01/22): 930 Week On Week Difference : Down by 25 VCM CFR SEA basis:( $/MT) Monday Opening (17/01/22): 1205 Friday Closing ( 21/01/22): 1200 Week On Week Difference : Down by $ 5 EDC CFR SEA basis:( $/MT) Monday Opening ( 17/01/22): 925 Friday Closing ( 21/01/22): 920 Week On Week Difference : Down by $ 5 China Bazaar: PVC Spot Bazaar offers( RMB/MT) Monday Opening ( 17/01/22): 8340 Friday Closing ( 21/01/22): 8460 Week On Week Difference : Up by 120 Bazaar Watch: Global Trend: Assessed as soft. Latest Int'l. Offers for CIF NS, Mumbai : This week, Int'l. offers assessed lower at US$ 1500-1520/Mt.Taiwanese PVC maker, Formosa Plastic corp. announced their fresh offer for February '22 deliveries at US$ 1490/Mt. Latest Rate revision: WEF 20th Jan'22,RIL decreased PVC Prices by Rs.4/Kg. Latest Custom exchange rate: Custom Exchange rate ($-INR) for imports was revised to Rs.75.30 (-0.10 ) wef January 21, 2022, from the previous 75.40 on Jan.7th, 2022. Buying pulse: Regional buying sentiments assessed poor as processors have opted for Need base buying policy. In anticipation of further price cut, Industry participants have taken cautious stance & avoid any extra inventory. Deals of PVC concluded in recent past.( Rs/Kg+GST,Ex Mundra ) High 'K value : Rs.127-128 Low 'K Value : Rs.137-138 Purchase Opinion:In a view of above scenario along with current status of other price governing factors, Polymer procurement is advised for routine requirements. |
| PVC: Weekly Report & Future Trend - 3rd Wk Jan'22. (Dt: 15/01/2022- Posting Cycle : Weekly, Saturday) |
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Ethylene CFR N.E.A Basis:( $/MT) Monday Opening (10/01/22): 1025 Friday Closing ( 14/01/22): 980 Week On Week Difference : Down by 45 VCM CFR SEA basis:( $/MT) Monday Opening (10/01/22): 1205 Friday Closing ( 14/01/22): 1205 Week On Week Difference : Stable EDC CFR SEA basis:( $/MT) Monday Opening ( 10/01/22): 925 Friday Closing ( 14/01/22): 925 Week On Week Difference : Stable China Bazaar: PVC Spot Bazaar offers( RMB/MT) Monday Opening ( 10/01/22): 8330 Friday Closing ( 14/01/22): 8280 Week On Week Difference : Down by 50 Bazaar Watch: Global Trend: Assessed as stable. Latest Int'l. Offers for CIF NS, Mumbai : This week, Int'l. offers assessed lower at US$ 1550-1560/Mt.Taiwanese PVC maker, Formosa Plastic corp. has postponed their next offer date to 18 Jan'22 for February '22 deliveries.Rising container charges may result in price rise of US$ 30-40/Mt for CIF Kolkata in comparison with CIF NS/ Mundra. Latest Rate revision: WEF 13th Jan'22,RIL decreased PVC Prices by Rs.5/Kg. Latest Custom exchange rate: Custom Exchange rate ($-INR) for imports was revised to Rs.75.40 (-0.50 ) wef January 7, 2022, from the previous 75.90 on Dec. 17, 2021. Buying pulse: This week,persistently falling regional demand along with an appreciation of INR against USD together forced local producer to offer handsome price cut of Rs.5/Kg. At other end, sudden rise in affected nos. of covid & subsequent precautionary measures imposed by regional authorities has invited many uncertainties. Deals of PVC concluded in recent past.( Rs/Kg+GST,Ex Mundra ) High 'K value : Rs.128-129 Low 'K Value : Rs.139-140 Purchase Opinion: Considering above outlook & expected influence of other price controlling elements, Polymer procurement is suggested for routine requirements. |
| PVC: Weekly Report & Future Trend - 2nd Wk Jan'22. (Dt: 08/01/2022- Posting Cycle : Weekly, Saturday) |
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Feedstock: Ethylene CFR N.E.A Basis:( $/MT) Monday Opening (03/01/22): 1025 Friday Closing ( 07/01/22): 1025 Week On Week Difference : Stable VCM CFR SEA basis:( $/MT) Monday Opening (03/01/22): 1220 Friday Closing ( 07/01/22): 1205 Week On Week Difference : Down by 15 EDC CFR SEA basis:( $/MT) Monday Opening ( 03/01/22): 925 Friday Closing ( 07/01/22): 925 Week On Week Difference : stable China Bazaar: PVC Spot Bazaar offers( RMB/MT) Monday Opening ( 03/01/22): 8320 Friday Closing ( 07/01/22): 8340 Week On Week Difference : Up by 20 Bazaar Watch: Global Trend: Assessed as stable. Latest Int'l. Offers for CIF NS, Mumbai : This week, Int'l. offers remained stable at US$ 1650/Mt for January '22 deliveries.Taiwanese producer, Formosa Plastic corp. has postponed their next offer date to 18 Jan'22 for February '22 shipments. Latest Rate revision: WEF 1st Jan'22,RIL left PVC Prices rolled over. Latest Custom exchange rate: Custom Exchange rate ($-INR) for imports was revised to Rs.75.40 (-0.50 ) wef January 7, 2022, from the previous 75.90 on Dec. 17, 2021. Buying pulse: Regional demand cycle turned slow as buyers have opted for cautious stand & avoiding extra procurement. Emerging outlook & prevailing uncertainties over pandemic has became major concern of industry.Dull demand has forced importers, traders to squeeze their profit margin to conclude deal.Local demand is expected to improve in near future as seasonal buying will support commodity trend. Deals of PVC concluded in recent past.( Rs/Kg+GST,Ex Mundra ) High 'K value : Rs.134-135 Low 'K Value : Rs.143-144 Purchase Opinion: Based on current scenario & status of other price governing factors,Polymer buying is advised for routine requirements. |