PVC Market Split Widens in India as Price Gap Hits Record Levels

India’s PVC market is witnessing a sharp divide as the price gap between acetylene-based and ethylene-based PVC reaches unprecedented levels.

What was once a small premium has now expanded into a major cost difference, forcing buyers to rethink procurement strategies.

Price Gap Expands Beyond $100

The difference between the two production routes has widened significantly:

* Acetylene-based PVC (China): $910–940/ton CIF India
* Ethylene-based PVC: $1050–1100/ton CIF India

This marks a gap of over $100 per ton, far above the typical $10–30 spread seen historically.

Buyers Shift Toward Lower-Cost Material

The steep price difference is pushing buyers, especially small and medium manufacturers, toward acetylene-based PVC.

Industries such as irrigation and construction are under strong cost pressure, making it difficult to absorb higher-priced material.

As a result, many processors are adjusting formulations to accommodate cheaper alternatives.

Premium Segment Faces Weak Demand

Demand for ethylene-based PVC has slowed significantly.

Market participants report limited buying interest at higher price levels, with transactions mostly restricted to lower-end offers.

This has created a near standstill in the premium segment.

Rising Costs Drive Ethylene-Based Prices Higher

The high cost of ethylene-based PVC is largely linked to rising feedstock prices.

Increased energy costs and supply disruptions have pushed production expenses higher, forcing suppliers to maintain firm pricing.

At the same time, geopolitical risks and higher logistics costs have added further pressure.

Domestic Prices Add to Market Pressure

Local PVC prices in India have also surged sharply in recent weeks, reaching multi-year highs.

This has widened the gap between domestic and imported material, making lower-cost imports more attractive for buyers.

Market Outlook

The Indian PVC market is currently divided between cost-driven demand and supply-side pressures.

Unless the price gap narrows—either through rising low-cost prices or easing feedstock costs—the current imbalance is expected to continue.

For now, lower-cost acetylene-based PVC is dominating volumes, while demand for higher-priced ethylene-based material remains weak.

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