PVC Prices Hit Four-Month Low in India, Traders Anticipate Stability

PVC traders in India suggest the market may have hit bottom after a major Taiwanese producer cut benchmark prices for the fourth consecutive month. Prices to India have dropped by $110 per ton since the beginning of the year, reaching $700 per ton CIF. Despite this, buyer sentiment remains subdued, with no signs of significant procurement surges by converters.

The latest price drop may mark the lowest point, with expectations of either a slight hike or a rollover in May. Allocations from the Taiwanese producer were reportedly sold out within minutes, reflecting cautious interest. However, buyers remain hesitant, citing concerns over profitability and the upcoming monsoon season.

Chinese suppliers have also shown reluctance to reduce prices below $670 per ton CIF.

Adding to the uncertainty, the anticipated government infrastructure tenders following the higher capital expenditure allocation in the national budget are yet to materialize. Traders remain watchful, with expectations of renewed buying activity potentially surfacing by August, ahead of the post-monsoon period.

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