Price rise in PVC refuses to cool down and is maintaining northward journey defying law of gravity. Price rise which was started on 1st May has never corrected thereafter forcing the dealers to maintain higher stocks. In the third quarter, in a span of two weeks, PVC price has seen two hikes, the latest one during last week by Rs 4/kg is the biggest one since May 1st.
The rally, which started with a sharp spurt in May 2020 and June 2020, has now extended into October 2020 as well. PVC prices, which now stand at Rs 98.3/kg, have risen 49.9% since 1st May 2020.
Uptick in trade activities across the globe and recovery in crude prices have contributed to the continued price rise of the material in last six months. Further, petrochemical producer Formosa Plastics has shut down its multiple plants in USA between July and September for maintenance purpose which in turn has impacted global polymer price.
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.
On the other hand, CPVC price has remained relatively stable during the period due to subdued demand. Top CPVC pipe players took 3-5% price hike in the first week of March 2020 and there were plans for a further hike in price in June which was never implemented. However, on 1st October Prince Pipes took the lead by raising the CPVC price by 3% and other manufacturers too may follow the suit and raise prices.