HomeNewsDealers see further scope for PVC prices to fall

Dealers see further scope for PVC prices to fall

Some leading PVC pipes dealers expect prices of the material to fall further in the coming weeks. According to them, PVC prices should stabilise 20-25% lower than current level. This expectation may impact their purchases from the manufacturers as most of the dealers may postpone their buying to take advantage of expected lower prices.

It may be recalled here that in one of the longest rallies in the PVC prices which had extended to the fourth quarter of FY21 had defied all forecasts made by the experts. PVC prices had doubled since 1st May 2020 in less than a year much to the discomfort of builders and farmers. The surge has been largely led by sustained supply-side issues globally with US cold wave leading to the shutdown of plants in January-February. However, after an increase of Rs 19/kg, or 16.2%, in Q4FY21, PVC prices reversed their trend in the current financial year by falling 4.4% in the first quarter so far. In fact, PVC prices have fallen by 6.5% from the peak of Rs 139.3/kg in May 2021.

Meanwhile, according to some dealers, despite lockdowns, the first quarter of the current financial year is seeing strong growth compared to Q1FY20 led by faster-than-expected demand pick up. Further relaxation in lockdown norms may help the demand to grow faster.

According to the analysts, the long-term prospects of the industry is bright, especially in view of government’s sharpening focus on agriculture & rural incomes and its push on housing, infrastructure & sanitation.

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