PVC price which had been falling continuously since mid-March, last week changed its direction of movement and started rising. In fact, last week, PVC price was hiked twice, by Rs 2/kg each on 18th and 21st May. PVC prices now stand at Rs69.6/kg. The hike in PVC prices was largely due to higher international PVC prices.
With recent uptick in trade activities across the country and also the globe and some recovery in crude prices, PVC prices have increased by Rs 4/kg, or 6%, in last one week. Despite this hike, prices, remain lower by Rs 7/kg, or 9.1%, from the 1st April 2020 level. 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.
Interestingly, CPVC price on the other hand, has remained steady unaffected by the steep fall in the price of PVC. Leading CPVC pipe players took a 3-5% price hike in the first week of March 2020 and CPVC prices have since remained firm. However, with recent sharp cuts in PVC prices, the price differential between PVC and CPVC has widened.