Indian Producer Raises Domestic PVC Prices Again in July Amid Rising Input Costs

A leading Indian refiner and petrochemical producer has announced its second domestic PVC price increase in July, with the latest revision taking effect from July 22. The move reflects mounting feedstock costs across Asia and continued efforts by producers to improve margins despite seasonally weak demand.

Under the latest revision, PVC prices have been increased by INR2,000/ton ($21/ton) across all grades. As is common in the Indian market, other domestic PVC manufacturers are expected to implement similar increases to keep their pricing aligned. Market sentiment has also received support from higher August PVC offers announced by a major Taiwanese supplier, which has strengthened regional price expectations.

The latest increase follows an earlier revision announced on July 17, when standard PVC pipe grades (K67-68) were raised by INR3,000/ton ($31/ton), while low K-value grades (K57-60), mainly used in injection moulding and rigid fittings, saw a larger increase of INR4,000/ton ($41/ton).

With these two revisions, cumulative domestic PVC price increases have now reached INR5,000-6,000/ton within less than a week. The latest hikes have more than offset the INR3,000/ton reduction introduced earlier this month after the producer withdrew its price protection scheme, pushing local PVC prices well above their levels at the beginning of July.

The pace of these increases is noteworthy, especially during the monsoon season, when PVC demand in India is usually subdued due to slower construction activity and reduced agricultural pipe installations. However, rising prices of key feedstocks such as ethylene and vinyl chloride monomer (VCM) have significantly increased production costs, prompting manufacturers to focus on restoring margins rather than responding to seasonal demand weakness.

Market participants also noted that firmer regional import offers and continued volatility in freight rates have helped domestic producers maintain a premium over imported material. Meanwhile, downstream converters, who had reduced inventories after the withdrawal of price protection, have started making selective purchases to meet immediate production requirements despite the ongoing seasonal slowdown.

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