PVC prices increased for the 4th time in a row in last 3 months. Once again, in present times the PVC prices are almost on the same level when the material was at an all time high point in April end this year. Reliance has raised PVC prices by 5000 per ton from 19th August, 2021. The overall increase has been around Rs 15 per kg lately, say PVC buyers from the industry side.
Today wood panel products are hand in hand impacted with PVC prices. The compound based on PVC resin is extensively used by Wood plastic composite boards, Door frames, PVC edge band tapes and PVC laminates. Even products like Charcol panel, decorative PVC sheets and profiles are made with similar mixed compounds in combination with other calcium carbonate mixes. The PVC has a lot to play with the prices of all these products that are sold on wood panel and decorative surfaces counters. In India the supplier company is Reliance whose prices are in tandem with international markets.
In international markets USA, China, Russia are the key supplying countries for PVC. The Shutdown for maintenance at two large producers during past months has added to the pressure on supplies in the international market. The rapid increase in prices of PVC is causing a lot of pain to smaller players who are already under pressure with liquidity and working capital issues. It is certain that If PVC prices are not coming at sustainable level with respect to finished product affordability; the smaller PVC based material manufacturer will witness working capital issues, profitability along with challenges in finding the raw materials.
The PVC board makers and PVC edge band tape manufacturers are sandwiched thus exploring the possibilities of passing on the prices to the markets. It is being expected that September will witness another price announcement in this segment again.