Strong points

Half of Japan’s monthly exports go to India

India’s PVC demand will remain weak amid COVID-19 lockdowns

Japanese polyvinyl chloride exports fell 5.9% month-on-month in May to a 13-month low of 42,212 tonnes, as part of India’s partial lockdown, the latest Japanese customs data showed shown June 30. Compared with a year earlier, exports fell 10.8%.

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About half of Japan’s monthly exports go to India, where it enjoys zero import tax. PVC exports from Japan to India also hit a 13-month low at 22,310t in May, as partial lockdown in India amid spike in COVID-19 cases reduced appetite for shopping of PVC.

The price of PVC CFR India averaged $ 1,545 / t in May, up from a record high of $ 1,657.50 / t in April, according to data from S&P Global Platts.

India was hit by the second rescue from the coronavirus pandemic in May, which resulted in partial closures in major cities. India’s buying appetite for PVC shipments rapidly waned as economic activities slowed against a backdrop of partial stalemate.

Market sources said India started to recover from the second wave in June. However, sources expect a slower recovery.

“The second wave hit different provinces at different times. The timing of the recovery is also expected to be different in each province,” a market source said.

The CFR India spot price base would likely continue to decline, following lower monthly bids.

The monthly offer for July was announced at $ 1,380 / mt CFR India, compared to $ 1,520 / mt for June and $ 1,670 / mt for May, according to market sources.

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