Import PVC prices have been softening gradually over the past few weeks in India, in the face of lackluster demand, as per Chemorbis. Although demand is expected to remain sluggish for the short term, a revival in demand towards the end of the month is being predicted by a several players based on the need to begin preparations for the upcoming Diwali holidays in the country. Import PVC prices in the Indian market have been declining gradually over the past month as sellers have agreed to steady reductions on their prices to bring their offers closer into line with the prevailing buy ideas in the market. Import offers for Asian origins posted declines of US$15/ton on the upper end of the range over the past week, with traders adding that buyers are still showing some resistance to these offers. Improved availability, helped by Finolex’s return in early September, along with lackluster demand have been cited as among the main reasons for the slide in import prices, with most buyers saying that they are unwilling to purchase beyond their immediate needs for the present. In the local market, distributors predicted that domestic prices would remain largely unchanged over the short term, commenting that local prices remain competitive when compared with the prevailing import prices.
While the short term demand outlook calls for the continuation of needs-only purchasing strategies, players are predicting that demand will begin to pick up in late October or early November as the approach of Diwali in India will prompt buyers to increase their purchases to cover pre-holiday and year-end preparations. Expectations of improved demand later in the month have helped maintain a floor under the prevailing import prices as several traders report that they are taking a firm stance on their prices in expectations of seeing better demand over the next few weeks.