India PVC market buoyant on rising crude oil prices

Plastic Recycling  |  2011-06-01 08:56:33   |   By

PVC prices in Indian spot markets were around Rs. 60550 per ton in Delhi markets. There was increase in prices which can be attributed to increase in Crude oil prices

MUMBAI (Scrap Monster): PVC prices in Indian spot markets were around Rs. 60550 per ton in Delhi markets. There was increase in prices which can be attributed to increase in Crude oil prices. The local producers decided to roll over the prices, i.e. they kept the prices unchanged.

The PVC futures on Dalian Commodity Exchange observed increase in prices. There was increase of around $ 18 per ton at the end of the day. This increase in price can be attributed to increase in Crude oil prices. The price movement of Spot PVC prices in India and future prices of Sept ‘11 contract from Dalian Commodity Exchange are as indicated in the graphs below.

Crude oil prices increased on Tuesday by $ 2.11 to settle at $ 102.70 per barrel on NYMEX. This increase was because of signals from European Union to approve aids for Greece.

The news weakened US Dollar against Euro resulting into increased crude oil prices. The prices may reach around $ 106 per barrel as July contract for Crude broke the technical resistance through 100 day moving average on Tuesday.

The international PVC prices were around USD 1215 per ton. According to import parity pricing, the trade will take place around Rs. 63900 per ton. There was increase in prices by around $ 5 per ton compared to previous day's prices. The higher import price as compared to the current spot prices is an indication of healthy demand in near future.

A similar trend can be observed in the price movement of two commodities. The bullish sentiment for Crude oil market may be reflected in the global PVC market as well.