India PVC Prices Rise Further Despite Monsoon-Driven Demand Weakness

India’s suspension PVC market continues to strengthen despite the seasonal slowdown caused by heavy monsoon rains. A government-imposed import price floor, tighter supply and higher replacement costs are supporting prices and outweighing weak immediate demand.

Import S-PVC K67-68 prices increased by $20-30/ton from last week, with the weekly average reaching its highest level in around 10 weeks, according to ChemOrbis Price Index data.

A major Taiwanese producer added to the bullish sentiment by raising its August PVC offer to India by another $20/ton to $880/ton CIF India, cash. This followed a $45/ton increase announced in late July. No volume discounts were offered, and the producer’s remaining August allocation is reportedly limited. New September benchmark offers are expected next week.

Meanwhile, the DGFT’s $766/ton CIF minimum import price (MIP) continues to establish a floor for Chinese carbide-based PVC. These cargoes are currently being offered around $766-780/ton CIF India. The policy has also changed the competitive position of ethylene-based PVC, with offers below $800/ton no longer available.

Chinese C2 PVC is now generally offered at $800/ton CIF India and above, while Southeast Asian material is being quoted in the mid-$800s/ton CIF range. Japanese duty-free cargoes have reportedly traded at $890-900/ton CIF India, equivalent to dutiable levels below the mid-$800s/ton.

Chinese PVC Sets a Lower Competitive Benchmark

A Mumbai-based trader said Chinese carbide-based PVC has attracted strong interest around the MIP level of $766/ton CIF, while Chinese C2 material remains competitive from approximately $800/ton CIF.

According to the trader, traditional suppliers from Taiwan and Japan are finding it increasingly difficult to compete with Chinese producers’ cost structures. The earlier $860/ton CIF August indication from the Taiwanese producer was viewed largely as a benchmark rather than a level supporting significant business.

The producer’s subsequent move to $880/ton CIF has further widened the gap between traditional benchmark prices and the lower end of workable market levels. Although weak demand continues to limit buyers’ willingness to accept higher prices, limited August availability and the latest increase have further reduced access to low-priced C2 cargoes.

Another Mumbai trader pointed to firmer supply fundamentals, saying workable Chinese PVC cargoes are largely holding at $810/ton CIF and above. Tighter regional availability could potentially create a supply deficit in India, particularly if restricted allocations and port-clearance issues continue.

The trader warned that these constraints could become more significant for domestic converters once demand improves after the monsoon season.

Heavy Rains Keep Buyers Cautious

Despite the tighter supply situation, downstream PVC demand remains subdued across major Indian consuming regions. Widespread rainfall during August has limited end-use consumption and reduced buyers’ urgency to replenish stocks.

The monsoon has affected construction activity, municipal water projects and agricultural pipe installation across northern, western and southern India. Many converters are therefore continuing to purchase only what is immediately required and are delaying larger replenishment until weather conditions improve.

Firmer Crude Adds Cost Support

Stronger global energy prices are providing another layer of support to the PVC market. Traders highlighted the recent rise in Brent crude futures and noted that higher upstream costs could further increase PVC replacement values.

For now, the market’s firmness is being driven primarily by reduced availability of competitively priced imports rather than strong demand. The $766/ton MIP, disappearance of sub-$800/ton C2 offers, tighter regional supply and rising replacement costs have collectively lifted the market floor.

If rainfall eases across key industrial regions, improving agricultural pipe demand and the resumption of infrastructure activity could strengthen consumption. With import availability remaining constrained, India’s PVC market is likely to retain a firm tone heading into September.

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