Astral Poly Technik may go for a price hike of its CPVC products in the next quarter. Most of the CPVC suppliers have already taken price hike of 4-5% recently to offset losses from volatile currency movements. Astral is also planning to take same price hike in the coming quarter.
In February this year, the Directorate General of Trade Remedies (DGTR) had imposed a final anti-dumping duty (ADD) on CPVC resin/compound imported by India from China/Korea for a period of five years. The ADD has made the Chinese and Korean imports (constituting 30% of India’s overall imports of CPVC resin/compound) non-competitive vis-à-vis major US and Japan CPVC suppliers. Leading CPVC pipe players took a 3-5% price hike in the first week of March 2020 and CPVC prices have since remained firm. Its only recently that some of the manufacturers took to price hike again.
On the other hand, PVC market was relatively more volatile and price of the material fell as much as 11% during the period between March and May. However, during last few weeks the same has started moving northward. Some of the companies, including Astral passed on the benefit of lower price to its customers.
During the year just completed, Astral has expanded its business in Tier I, II, III & IV as well as the rural market as the company’s poly as well as CPVC pipes witnessed good demand. The company’s new plant at Odisha will be ready by year March, 2021 and the company will be incurring a capex of Rs 30-40 crore on the project. Odisha plant will have a capacity of 30,000 MTPA and after its commissioning, the company’s manufacturing capacity will reach 2.5lakh MTPA.