Singapore — China imported a record-high 27,207 mt of PVC from India in June -- more than five times compared to 5,174 mt recorded in May -- as India accelerated PVC exports amid pandemic-related nationwide lockdown, the latest statistics data showed.
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It is a rare move as the Indian PVC market is net short by close to 2 million mt/year.
India started its nationwide lockdown on March 25 and it was initially scheduled to be lifted on May 3, but the government extended the lockdown by another two weeks with new restrictions.
During the lockdown, India's PVC demand plunged, prompting cancellation of PVC deliveries to India. Suppliers had to move their cargoes to China to clear excess supplies.
Looking forward, market sources said China's PVC imports from India would likely slow as India's nationwide lockdown ended early-June.
For June delivery, market participants negotiated in May.
For June arrival business, key Asian PVC makers increased their offers to India by $40/mt on the month to $730/mt, which was widely accepted by buyers.
For July, the PVC makers increased further, pushing up their offers by more than $100/mt from June to $840/mt, which was also accepted.
In total, China's PVC imports for June also stood at a record-high of 172,941 mt, up from 92,254 mt in May, according to the latest statistics.
In other countries, China's PVC imports from the US stood at a three-month high of 23,672 mt, compared to 5,231 mt a month earlier, the statistics showed.