New Delhi, June 5 (IANS) Demand for polyvinyl chloride (PVC) resin in India is expected to grow by 8 per cent per annum to reach 5.5 million metric tonnes (MMT) by FY27, a report said on Wednesday.
Demand for PVC resin witnessed a healthy growth at a CAGR of 6.2 per cent during FY20-FY25, reaching 4.7 million metric tonnes (MMT) last fiscal.
This was achieved on the back of strong demand from end-user industries supported by favourable government policies, said the report by CareEdge Ratings.
Out of India’s total demand for PVC, 95 per cent pertains to suspension PVC resin, and the balance 5 per cent pertains to paste PVC resin.
“The upcoming addition of 2.5 MMT domestic capacity by FY27 is expected to more than double the current production levels, reducing import reliance to an average of 1.4 MMT — reduction in imports from 62 per cent in FY25 to 30 per cent of overall domestic consumption in FY27,” said Rohan Deshmukh, Assistant Director at CareEdge Ratings.
Furthermore, the anticipated enforcement of BIS quality standards and expected imposition of anti-dumping duty on suspension PVC resin are likely to curb low-priced imports, support domestic price recovery, and “thus improve PVC-EDC spread to around $500/MT in H2 FY26”, Deshmukh added.
Surplus capacity and weak demand in major global economies resulted in substantial dumping of cheaper PVC in India during the last few years, which put pressure on domestic PVC prices and led to moderation of the PVC-EDC (Ethylene Dichloride) spread, impacting the profitability of India’s PVC players.
Going forward, PVC-EDC spread is expected to remain under pressure at below $400/MT in H1 FY26, amid continued demand slowdown in major economies and ongoing trade war, said the report.
However, with BIS quality standards for import of PVC resin slated to become effective from end-June 2025 and likely imposition of anti-dumping duty on Suspension PVC resin imports subject to final findings of the DGTR, the PVC-EDC spread is expected to improve to $500/MT in H2 FY26, thereby helping Indian PVC players.
–IANS
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