India, China see PVC supply limitations

India is set for maintenance shutdowns at two PVC producers in March which keeps the near term outlook firm supported by vivid seasonal demand and bullish expectations, according to ChemOrbis. China is also experiencing supply disruptions on the part of some producers. This is the backdrop against which a major Taiwanese producer is expected to announce new April prices, although it should be noted that sentiment in China is not as firm as it is in India. India’s Reliance is reportedly planning to shut its 200,000 tpa PVC plant in Baroda for 6 days starting from March 17. India’s Finolex is also reportedly experiencing a shutdown, according to players’ reports. The company has a capacity of 285,000 tpa. Some market players claimed that the company may not resume production before the end of March.A trader commented, “Demand is very strong in India while we heard that a producer has no material and the arrival of some import cargos seems to be delayed. Thus, we may see further increase announcements from the producer next week. Short local availability may stimulate some buying interest as well.” Another seller agreed commenting, “Locals producers are not be able to provide materials and they have told their customers not to expect materials this month. They will probably lift their offers up.” According to ChemOrbis, converters also expect to see higher levels in the days to come. “Demand has picked up since February and the only problem is tight supply for both local and import cargoes,” some buyers report. The PVC market may remain firm in the near term, buyers concur, as the construction season has just started. “Local demand is picking up right now whereas demand is actually emerging due to the shortage. We are optimistic about the near term outlook as PVC prices may not reverse before end May,” a buyer mentioned. Nonetheless, some players stated that a considerable amount of PVC was arriving in India by the middle of this month through the end of the month, which could alleviate the shortage in the coming term. Among offline capacities in China, Tianjin Dagu and Tinajin LG Dagu, two of the largest Chinese exporters of conventional PVC to Southeast Asia, are both said to be facing some supply limitations. Tianjin Dagu has a PVC capacity of 800,000 tpa while Tianjin LG Dagu has a capacity of 400,000 tpa. China’s Sichuan Jinlu is also set to bring its 340,000 tpa PVC plant located at Sichuan down for maintenance on 23 March. The scheduled maintenance is expected to last for almost one month.