The domestic PVC prices have increased 25% to Rs 60,000 per tonne in August 2008 compared to corresponding previous month. However, on a sequential basis the prices fell 6%. The average international price till date for August 2008 inched up 1% to $1304 per tonne but has fallen currently to $1295 per tonne. Since China was strict in controlling/lowering pollution relating to ongoing Olympics the user industry demand has came down. Even though the PVC production in Chana has came down this has brought significant increase in inventories to the producers resulting in increased supply to the export market. On domestic front the demand is stagnant due to on going monsoons. Going forward the prices is expected to remain sluggish in the short term and firm in the medium term.

Poly Vinyl Chloride is widely preferred as an alternative substitute in pipe segment and wire/cable applications. It is the most versatile thermoplastic used in the country. It is also used in various products like tubes, pipes and fittings, telecommunication cables, wires, films, packaging sheets, toys, bottles and footwear. In India the major non integrated producers of PVC and PVC pipes are Finolex Industries, DCW, Chemplast Sanmar, and DCM Shriram Consolidated. The non integrated producers procure ethylene and ethylene di chloride or VCM to produce PVC resins. DCM Shriram Consolidated is the only Indian company producing PVC through carbide route, which is widely popular in China. On the other hand, Reliance Industries is the integrated player producing PVC in India.

PVC forms 77% of the total sales turnover for Finolex Industries, 12% for DCM Sriram Consolidated, 53% for DCW and 44% for Chemplast Sanmar in FY ‘08.