India PVC Extends Gains as Domestic Majors Mirror Taiwan’s Hike with Modest Increases

India’s PVC market is strengthening further, supported by renewed optimism following the Union Budget 2026. The government’s record infrastructure allocation of INR 12.2 trillion ($135 billion) has triggered a surge in tenders for irrigation and water management projects, positioning public sector spending as the primary driver of polymer demand for the current quarter.

Reflecting firm global cues, India’s largest private-sector refiner and a leading domestic caustic soda and PVC producer have raised domestic PVC list prices by INR 1,500/ton ($17/ton), effective February 10–11, 2026. The move follows a $40/ton increase in March shipment offers from a major Taiwanese producer.

Following these revisions, domestic PVC prices are currently assessed in the range of INR 68,500–73,500/ton.

Strategic Chinese Diversions Ease Supply Pressure

Market participants note that Chinese exporters are redirecting shipments toward Europe ahead of the April 1 deadline to remove the 13% export rebate. This shift has temporarily eased supply pressure in India, limiting aggressive inflows.

Producers appear cautious about implementing steeper hikes. By maintaining moderate increases, they aim to prevent widening the price gap with imports, which could otherwise attract discounted Chinese cargoes back into India.

Costs Offset Softer Ethylene

Although Asian ethylene prices have softened — with Northeast Asia at $700/ton CFR and Southeast Asia at $680/ton CFR — firmer intermediate feedstocks are supporting PVC costs. VCM prices have risen to $420/ton CFR China, while EDC has strengthened to $200/ton CFR China amid maintenance activities and tighter regional availability. Higher freight rates are also keeping landed PVC costs elevated.

Balanced Strategy Amid Fragile Demand

Domestic demand remains steady but price-sensitive. While the agricultural pipe segment is entering its pre-monsoon peak season, converters are cautious about rapid cost escalation that could pressure margins. Producers are prioritizing consistent offtake volumes rather than risking a slowdown in buying activity after the prolonged market downturn that ended in December 2025.

Meanwhile, other major producers — including key north Indian, Pune-based, and Tamil Nadu-based players — have kept prices unchanged as of February 11, creating a fragmented pricing landscape.

Overall, the measured hikes suggest the market has likely bottomed out in late 2025, with producers adopting a balanced approach that supports infrastructure-led demand while maintaining market stability. Participants remain in a wait-and-watch mode for further revisions later in the month.

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