PVC price was hiked by Rs 2/kg, that is, by 2.9% last week which is the third hike in a matter of just 10 days. Thus, within a span of 10 days (on 18th May, 21st May and 28th May) price was increased thrice, each time by Rs 2/kg. PVC price now stands at Rs 71.6/kg. According to sector analysts, recent hikes in PVC prices are largely led by higher international PVC prices.
Despite likely demand woes in the near term amid COVID-19 concerns, the recent increase in PVC prices is expected to drive channel restocking. It should be noted that the trade is currently sitting on lean channel inventory due to lockdown which has been partially lifted from the beginning of May.
PVC price had started falling from the middle of March and the declining trend continued in the new fiscal too. The price had fallen by Rs 11/kg, a decline of 14.4% since 1st April, 2020 to a multi-year low of Rs 65.6/kg amid poor demand expectations due to COVID-19 impact.
Further, some of the large cPVC players recently took a price hike of 4-5% which was the first hike after 3-5% price increase in the first week of March 2020. According some players, recent hike in cPVC prices had become necessary due to rupee depreciation in recent weeks. It should be noted that in March price hike was effected post imposition of ADD on CPVC resin/compound sourced from China/Korea.