PVC Corona changes the export environment

The export environment for vinyl chloride resin (PVC) is changing. In India, the world's largest importer, lockdown (city blockade) started in late March with the spread of new coronavirus infection. Demand slumped all at once due to stagnation in social and economic activities. Exports to India in April fell sharply by 88.4% to 4,474 tons, the lowest level in five years. Taiwan and South Korea's shipments to India decreased by more than 90%. India is about to enter the monsoon season, which is a season of low demand.

In India, domestic demand for PVC, mainly for agricultural pipes, has continued to expand, but imports have continued to increase, reaching the level of 2 million tons per year, as production capacity has not been increased much. Japan and South Korea are the top three importers, accounting for the majority of the total.

Lockdown started in India for three weeks from the end of March, but the spread of the new coronavirus infection was extended due to the unstoppable spread.

Under these circumstances, PVC has been hit hard by exports to India. According to the Ministry of Finance trade statistics, shipments to India in April fell sharply from 38,637 tons in March to 4,474 tons. It has been less than 5,000 tons since January 2015. On the other hand, shipments to Vietnam increased by 46.9% from March to 13,820 tons, making it the largest destination for the first time in a month. China's exports fell 3.8% to 7595 tons, while total exports fell 49.8% to 32,689 tons.

Japan's exports began to expand in 2015 due to the weak yen. For India, the increase was driven, and in 1919, the import tax rate of India was reviewed, and Japanese products became advantageous in terms of cost.

Taiwan's exports were 1.3 million tons per year, and last year it was 451,876 tons to India. In April of this year, shipments to India were down 91.2% to 2,135 tons, while those to China were up 39.9% to 2,778 tons. Vietnam decreased by 21.1% to 13,468 tons, Bangladesh decreased by 47.9% to 16,679 tons, and Australia decreased by 40.5% to 19,920 tons. It did not shake with 75,180 tons.

South Korea's shipment to India last year was 305,426 tons. In April of this year, it decreased sharply by 92.5% from March to 1,416 tons, while the volume for China increased 18 times to 16,362 tons. Sales to the Middle East and Vietnam also increased, resulting in a solid 3.0% increase to 45,234 tons.

(Source: Japan Chemical Daily, 5th of June 2020 )