The domestic PVC prices for the month of April 2009 have increased by 11% on sequential basis to Rs 40000 per tonne as domestic demand outstrips supply. However on a y-o-y basis the prices are still lower by 24%. The average international price till date for April 2009 inched up 1% to $670 per tonne on a sequential basis but on a y-o-y basis has fallen heavily by 42%.

March international prices were down 4% to $666 per tonne on sequential basis and 39% on a y-o-y basis. Compared to this raw material EDC international price increased 19% to $270 per tonne in April 2008 while ethylene prices rose 4% to $640 per tonne on sequential basis but was lower by 38% and 52% on y-o-y basis respectively. VCM international prices fell 2% sequentially to $570 per tonne but fell 38% compared to corresponding previous month. Most of the PVC plants are running at 100% capacity utilisation and demand seems to have recovered from agriculture sector and more importantly due to lower prices. Margins of the PVC producers have improved as old high cost inventory have got cleared and cheaper raw material benefits have started to accrue.

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.