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It is expected that by the fiscal year ending on March 31, 2008, the demand for PVC in India will increase by 15% to 1.4 million tons. To meet this increase, India will import about 450,000 tons of PVC. In 2006-2007, India imported 340,000 tons of PVC. India currently has a total PVC production capacity of approximately 1 million tons/year, but actual production has been reduced because of the shutdown of many plants. In recent months, India’s PVC prices have surged, prompting Indian traders and end users to choose more cheaper resin materials from China.
This year, the main demand growth of PVC in India comes from industries such as construction, water supply, sanitation and irrigation pipes. The rising prosperity of India's construction industry is driving an increase in the demand for PVC pipes and window profiles. Relative to other Asian producing countries, China's PVC prices are cheaper, usually the price of calcium carbide method of calcium carbide is about 30~40 US dollars/ton lower than that of ethylene products. When end-users manufacture PVC pipes, calcium carbide method and PVC method have the same performance, so most users will prefer to use calcium carbide method polyvinyl chloride.
China's export of PVC to India rapidly increases
Due to the increase in demand for PVC in India and a severe supply shortage, China's exports of PVC to India in the first eight months of the year have tripled compared to the same period of last year. This trend is continuing. According to statistics from the General Administration of Customs of China, in the first 8 months of this year, the PVC resin that China exported to India surged to 183,500 tons, compared with 59,399 tons in the same period of last year. Most of the export resins are calcium carbide polyvinyl chloride.