India PVC Remains Firm Despite Weak Monsoon Demand as Import Prices Rise

India’s suspension PVC market continued to strengthen despite subdued seasonal demand, with tighter import availability, higher replacement costs and the government’s minimum import price supporting the market. Heavy monsoon rains have weakened immediate buying activity, but supply-side factors have continued to keep prices firm.

Import S-PVC K67-68 prices increased by $20-30/ton from last week, pushing the weekly average to its highest level in around 10 weeks. At the same time, lower-priced ethylene-based PVC offers below $800/ton CIF have largely disappeared from the market.

A major Taiwanese producer recently raised its August PVC offer to India by another $20/ton to $880/ton CIF, cash, following an earlier $45/ton increase in late July. No volume discounts were announced, while the producer's remaining August allocation was reported to be limited. Market participants are now awaiting September shipment offers.

The $766/ton CIF minimum import price (MIP) imposed by India's DGFT continues to establish a price floor for Chinese carbide-based PVC. These cargoes are currently quoted at around $766-780/ton CIF, while the policy has also reshaped competition in the ethylene-based PVC market.

Chinese C2 PVC is now generally holding at $800/ton CIF or above, while Southeast Asian material is available in the mid-$800s/ton CIF range. Japanese duty-free cargoes have also been reported at $890-900/ton CIF India, equivalent to levels below the mid-$800s/ton on a dutiable basis.

Chinese Cargoes Set the Lower Price Benchmark

Chinese carbide-based PVC has attracted strong interest near the $766/ton MIP level, while ethylene-based Chinese material remains competitive from around $800/ton CIF.

The growing availability of competitively priced Chinese cargoes has made it increasingly difficult for traditional suppliers from Taiwan and Japan to compete on price. Before the latest increase, the Taiwanese producer's earlier $860/ton CIF August offer was largely viewed as a benchmark rather than a widely workable trading level.

The move to $880/ton CIF has further widened the difference between traditional benchmark offers and the lower end of the import market. Limited August availability has also reinforced the tighter supply picture, even though weak demand continues to restrict buyers from accepting significantly higher levels.

Market sources noted that workable Chinese PVC cargoes are increasingly holding at $810/ton CIF and above. With regional availability tightening, some participants have warned that India could face a supply shortage if allocations remain restricted and import clearance issues continue.

Heavy Rains Keep Buyers Cautious

Despite firmer supply conditions, downstream demand remains weak across major consuming regions. Widespread rainfall during August has slowed consumption and temporarily restricted further price gains.

Construction activity, municipal water projects and agricultural pipe installation have all been affected by the monsoon across northern, western and southern India. As a result, converters are largely purchasing only for immediate requirements and postponing larger restocking until weather conditions improve.

Higher Crude Adds Further Cost Support

Rising Brent crude prices have provided another layer of support to the PVC market. Higher energy and feedstock costs are increasing replacement values and giving suppliers greater reason to maintain firm price levels.

For now, India's PVC market is being supported more by restricted availability than by demand growth. The $766/ton MIP, the disappearance of sub-$800/ton C2 offers, tighter regional supply and rising replacement costs have collectively strengthened the market floor.

If monsoon conditions ease and demand from agricultural pipes and infrastructure projects improves, consumption could pick up further. With import availability remaining constrained, India's PVC market may continue to stay firm heading toward September.

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